Series 7  General Securities Representative Exam
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A trader sells a straddle for 18.00. What is his maximum loss?
Call Price minus Put Price
A
$900
B
$1,800
C
Unlimited
D
Explanations
The maximum loss when selling a straddle is unlimited. It involves selling an at the money call and at the money put. Since the price of a stock can theoretically rise to infinity; there is an unlimited maximum loss
Pricing
Basic
Part of the questions for each course

 Course
 Questions

 SIE
 20 of 150

 Series 6
 30 of 500

 Series 7
 50 of 625