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

question 5

True/False

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

---

Definitions:

Service Department

A division within a company that performs support functions, aiding the production or sales departments but not generating revenue directly.

Information Technology

The use of computers, storage, networking and other physical devices, infrastructure, and processes to create, process, store, secure, and exchange all forms of electronic data.

Operating Departments

Divisions within an organization directly involved in its core business activities, such as production or sales.

Computer Workstations

High-performance computers designed for technical or scientific applications, often used in professional environments for computing-intensive tasks.