The potential loss for a writer of a naked call option on a stock is

A) limited.
B) unlimited.
C) increasing when the stock price is decreasing.
D) equal to the call premium.
E) None of the options are correct.

Naked Call Option

An options strategy where an investor sells call options without owning the underlying asset, exposing the seller to unlimited risk.

Potential Loss

Refers to the possible financial loss or damage that might arise from a risk or unfavorable event.