Multiple Choice
Which one of the following is true for an investor who purchased a share of stock for $45 and purchased a $45 put option on the stock?
A) The investor profits when the stock decreases in value.
B) The maximum loss is the price of the option premium.
C) The investor is protected against upside potential.
D) Increases in the value of the stock will go to the seller of the put.
Correct Answer:
Verified
Correct Answer:
Verified
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