G/L Options

CFA Level I
#1

I need help completing this table. Thanks… Long Call Max gain: S - Cost (=Premium x Number of Contracts) Max loss: Cost (=Premium x Number of Contracts) Short Call Max gain: Cost (=Premium x Number of Contracts) Max loss: infinite Long Put Max gain: Max loss: Short Put Max gain: Cost (=Premium x Number of Contracts) Max loss:

#2

Long Call: Max gain = infinite (stock goes to forever) Long Put : Max gain = strike - premium (stock goes to 0) short Put: Max loss = strike - premium (stock goes to 0) Long put: max loss = premium short put: max gain = premium

#3

Thanks Joey! You’re always so helpful.

#4

Thanks!!!