Series 7 - General Securities Representative Exam

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BBM corp is trading at $105 per share. A trader buys the July $120 calls for $0.90. There are 98 days until expiration. What is the trader's maximum gain?

$1,500
A
$2,200
B
$9,710
C
Unlimited
D

Explanations

When buying calls, the maximum gain is unlimited and the maximum loss is the amount of premium paid. Days until expiration does not impact this outcome

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