The formula to calculate the maximum loss (L) is:
\[ L = (S_L - S_S) - P \]
Where:
Let's say the strike price of the long call is 50, the strike price of the short call is 45, and the net premium received is 2. Using the formula:
\[ L = (50 - 45) - 2 \]
We get:
\[ L = 3 \]
So, the maximum loss (\( L \)) is 3.
