Which of the Following Statements Best Reflects the Following Profit

question 25

Multiple Choice

Which of the following statements best reflects the following profit profile of an option contract?

• A) The profile depicts the short call position of the option seller.
• B) The profile depicts the long call position of the buyer of the option.
• C) The profile depicts the short put position of the option seller.
• D) The profile depicts the long put position of the buyer of the option.

---

Definitions:

Status Difference

The variation in prestige, honor, respect, or social ranking among individuals or groups within a society or organization.

Obedience

The act of following orders or directions from someone in authority, often without questioning them.

Innate

Inborn or natural characteristics, abilities, or qualities not influenced by learning or experience.

Learned

Acquired knowledge or skills through study, experience, or being taught.