Series 7 - General Securities Representative Exam

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Janine sold a FEB 60/50 put credit spread for $3.30. What is her maximum loss?

$330
A
Unlimited
B
$670
C
$1,330
D

Explanations

She collected $330 by writing (selling) this spread. Her maximum loss is the difference between the strikes (10) ($1000) minus the premium collected $1.000 - $330 = $670.

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