Which One of the Following Statements Is Correct for an Investor

Multiple Choice

Which one of the following statements is correct for an investor who has purchased portfolio insurance by owning a stock and buying a put option on that stock?

A) The investor profits when the stock price declines.
B) Maximum profitability occurs when the stock price equals the strike price.
C) Value per share can decline no further than the strike price less the value of the option premium.
D) The option will certainly be exercised.