Which of the Following Is NOT True for the Writer

question 27

Multiple Choice

Which of the following is NOT true for the writer of a put option?

• A) The maximum loss is limited to the strike price of the underlying asset less the premium.
• B) The gain or loss is equal to but of the opposite sign of the buyer of a put option.
• C) The maximum gain is the amount of the premium.
• D) All of the above are true.

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Definitions:

Schizophrenia

A chronic mental disorder characterized by delusions, hallucinations, disorganized speech, and impaired cognitive ability.

Cognitive-behavioral Model

A psychological approach that addresses dysfunctional emotions, behaviors, and cognitions through goal-oriented, systematic procedures.

Self-criticism

The process of evaluating one's own behaviors and performance critically.

Negative Thinking

A cognitive process where individuals perceive or anticipate situations in a more pessimistic or disadvantageous light than they objectively are.