What is the maximum loss for the buyer of an option contract?

1. AStrike price minus premium
2. BUnlimited
3. CThe premium paid✓ Correct answer
4. DThere is no loss possible

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• A call option with a $25 strike is at the money when the stock is at:
• A put option is described as 'in the money' when:
• A customer is long 1 ABC 40 put. What does this give the customer the right to do?
• Which of the following is true for a call option at the money?