The Maximum Possible Payoff to the Owner of a Put

question 49

Multiple Choice

The maximum possible payoff to the owner of a put options is:

• A) the stock price.
• B) the exercise price minus the stock price.
• C) the option's exercise price.
• D) there is no maximum.

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Definitions:

UUU

In genetic code, a triplet nucleotide sequence (uracil-uracil-uracil) in RNA that codes for the amino acid phenylalanine, playing a role in protein synthesis.

DNA Sequences

The order of nucleotides in a DNA molecule, which determines genetic information and characteristics of living organisms.

Proteins

Large molecules composed of one or more chains of amino acids in a specific order, determined by the base sequence of nucleotides in the DNA encoding for the protein.

Cell

Smallest unit of life; at minimum, consists of a plasma membrane, cytoplasm, and DNA.