Series 7 - General Securities Representative Exam
Preview Mode
Mr. Tren wrote a Jan. 50/60 call credit spread for $3.30 in GHI corp. What is his maximum loss?
$330
A
$1,000
B
unlimited
C
$670
D
Explanations
The maximum loss when selling a credit spread is the difference between the strikes (10) and the amount of premium received (3.30)