Multiple Choice
Which of the following best reflects the exposure position of a writer of a put option?
A) A loss is made when the spot price is below the exercise price adjusted by the premium.
B) The extent of the loss potential is limited to a zero spot price less the premium paid.
C) The maximum profit to the writer is limited to the extent of the premium paid.
D) All of the given answers.
Correct Answer:
Verified
Correct Answer:
Verified
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