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Checking both conditions doesn't really address the problem. Again, if the price jumps to 55.1 from say 49.9, then none of the conditions will be met and the loss will be unlimited.
I can see where the writer of this question was trying to get at. I'm just not convinced that B is unequivocally correct.
In the 2012 curriculum, this is reading 47, page 76 of the Equity and FI book. |
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