LOS
a. determine the value at expiration, profit, maximum profit, maximum loss,
breakeven underlying price at expiration, and general shape of the graph of the
strategies of selling calls and indicate the market outlook
of investors using these strategies;
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The maximum loss is unlimited. the increase in share price has to be born by the call writer.
The maximum gain is limited to the premium received.
The break even point is X + c.
Writer of a call (naked call) requires a moderately bearish outlook for the underlying stock
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