If You Sell a Put Option, Your Maximum Profit Potential

question 45

Multiple Choice

If you sell a put option, your maximum profit potential is equal to:

• A) Max[stock price - exercise price, 0].
• B) Max[exercise price - stock price, 0].
• C) the option premium.
• D)the exercise price minus the option premium.

---

Definitions:

Integrator Roles

Refers to positions or responsibilities within an organization aimed at synthesizing various inputs, perspectives, and resources to achieve unified outcomes or solutions.

Formalization

The extent to which policies, procedures, job descriptions, and rules are written and explicitly articulated within an organization.

Centralization

The concentration of decision-making authority at the top levels of organizational hierarchy, limiting the autonomy of lower-level employees.

Specialized Jobs

Positions that are focused on a narrowly defined set of tasks, requiring specific skills and knowledge.