The Maximum Loss a Buyer of a Stock Put Option

question 78

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.
• E) None of the options are correct.

---

Definitions:

Special Order

Special order is an order for products or services that is outside the company's normal scope of operations or production schedules, often requiring unique specifications.

Variable Selling

Expenses related to selling that vary directly with the level of sales activity, such as commissions and shipping charges.

Financial Advantage

A benefit gained in financial terms, often seen as the edge that one company or entity has over its competitors in terms of cost, efficiency, or profitability.

Special Discounted Price

A reduced pricing offer made available to customers, often as a promotional or loyalty incentive.