Series 7 - General Securities Representative Exam
An options trader is bullish on a certain asset. He doesn't want to risk the options expiring worthless on him; so he buys calls far out in time. What is his maximum profit when buying calls that have plenty of time until expiration?
Premium of the callsA
Premium of the calls minus thetaB
The calls' delta + the premium outlayD
The maximum profit when buying calls of any kind is unlimited