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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Definitions:

Receive Ambassadors

The official act of acknowledging and accepting the diplomatic representatives of other nations, typically performed by heads of state or government.

Executive Privilege

The right of the president and other high-level officials to withhold information from Congress, the courts, and ultimately the public.

Unitary Executive

A theory in constitutional law that suggests the President possesses the power to control the entire executive branch.

Execute Acts

To carry out, implement, or perform actions or laws as prescribed by a legal or authoritative body.