Multiple Choice
Which of the following statements concerning put options are correct?
A) The writer of a put profits if the price of the underlying stock rises.
B) The writer of a put profits if the price of the underlying stock falls.
C) The owner of a put profits if the price of the underlying stock rises.
D) Both the owner and writer of a put profit when the price of the underlying stock falls.
Correct Answer:
Verified
Correct Answer:
Verified
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