When does a call option seller begin to incur losses? Option: When the premium received is less than the brokerage fees., When the spot price falls below the strike price., When the spot price equals the strike price., When the spot price exceeds the strike price.

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When does a call option seller begin to incur losses?

When the premium received is less than the brokerage fees.

When the spot price falls below the strike price.

When the spot price equals the strike price.

When the spot price exceeds the strike price.

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When does a put option buyer start making a profit?

When the spot price is below the strike price

When the spot price is equal to the strike price

When the premium paid is recovered

When the spot price is above the strike price

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What happens to a call option buyer's investment if the underlying price goes down?

They make a profit

They break even

They lose money

The outcome is unpredictable

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When is a put option seller considered profitable?

When the spot price rises above the strike price

When the spot price remains at the strike price

When the implied volatility of the underlying asset increases

When the spot price falls below the strike price

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When does a call option buyer benefit?

The buyer always benefits

When the asset price stays at the strike price

When the asset price increases higher than the strike price

When the asset price stays below the strike price

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What is the maximum potential loss for a call option buyer?

Unlimited

The strike price

The spot price

The premium paid