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Which of the Following Is NOT True for the Writer

Question 27

Multiple Choice

Which of the following is NOT true for the writer of a put option?


A) The maximum loss is limited to the strike price of the underlying asset less the premium.
B) The gain or loss is equal to but of the opposite sign of the buyer of a put option.
C) The maximum gain is the amount of the premium.
D) All of the above are true.

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