The Main Feature of the Potential Profit and Loss Profile

Multiple Choice

The main feature of the potential profit and loss profile for a long put party may be best described as:

A) the further the spot price is above the exercise price, the greater the profit.
B) profits are made from exercising an option when the spot price falls below the exercise price adjusted for the premium.
C) a loss is sustained if the spot price is less than the exercise price.
D) all of the given answers.