Multiple Choice
In regards to the writing (selling) of put options, which of the below statements is TRUE?
A) The profit and loss profile for a short put option is the mirror image of the long put option.
B) The theoretical maximum loss can be substantial should the price of the underlying asset fall; at the outside, if the price were to fall all the way to zero, the loss would be as large as the strike price less the option price.
C) The profit and loss profile for a short put option is the mirror image of the long put option with the maximum profit from this position being the option price
D) All of these
Correct Answer:
Verified
Correct Answer:
Verified
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