Which of the Following Statements Concerning Put Options Are Correct

question 87

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.

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