Regarding the Profitability of Options,it Is Impossible for a Producer

question 49

True/False

Regarding the profitability of options,it is impossible for a producer who sells put options to lose more than the price of the option premium.

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Definitions:

Standard Deviation

A statistic that measures the dispersion of a dataset relative to its mean, indicating how spread out the data points are.

Grouped Data

Data that has been organized into categories, classes, or intervals, making it easier to analyze and interpret.

Class Midpoint

The value halfway between the lower and upper class limits.

Empirical Rule

A statistical rule stating that for a normal distribution, nearly all data falls within three standard deviations of the mean.