Unformatted text preview: paid. Long Call e Buying a call 1. belief that stock will rise (bullish outlook); 2. risk limited to premium paid; 3. unlimited maximum reward. Short Put e Writing a put 1. belief that stock will rise (bullish outlook); 2. maximum reward limited to the premium received; 3. maximum risk unlimited down to the Strike Price less the premium received; 4. can be combined with another position to limit the risk....
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- Fall '08
- Corporate Finance, Unlimited, maximum reward, unlimited maximum reward