The Buyer (Long) of a Put Option

question 54

Multiple Choice

The buyer (long) of a put option:

• A) has a maximum loss equal to the premium paid.
• B) has a gain equal to but opposite in sign to the writer of the option.
• C) has maximum gain potential limited to the difference between the strike price and the premium paid.
• D) all of the above

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Definitions:

Husbands

Married men, especially when considered in relation to their partners in marriage.

Teenage Males

Young males typically within the age range of 13 to 19 years, navigating the period of adolescence.

Teenage Females

Young women typically aged between 13 and 19 years old.

Historical Trends

Patterns or shifts in behavior, events, or attitudes over a significant period in history.