Question:medium

What is the maximum loss for an option buyer?

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An option buyer has limited risk (capped at the premium paid) and unlimited profit potential, whereas an option seller has limited profit (the premium) and unlimited risk.
Updated On: Jun 22, 2026
  • Unlimited
  • Equal to the strike price
  • The option premium paid
  • Equal to the spot price of the underlying asset
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Show Solution

The Correct Option is C

Solution and Explanation

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