The Maximum Loss a Buyer of a Stock Put Option

question 12

Multiple Choice

The maximum loss a buyer of a stock put option can suffer is equal to

• A)the striking price minus the stock price.
• B)the stock price minus the value of the call.
• C)the put premium.
• D)the stock price.

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Definitions:

Sadism

The tendency to derive pleasure, especially sexual gratification, from inflicting pain, suffering, or humiliation on others.

Genocide

The intentional and methodical annihilation of a group based on their nationality, race, politics, or culture.

Psychopaths

Individuals displaying a long-term pattern of manipulating, exploiting, or violating the rights of others, often lacking empathy and remorse.

Perpetrators

Individuals who commit a harmful, illegal, or immoral act.