What Is the Lower Bound on the Value of a Put

question 32

Multiple Choice

What is the lower bound on the value of a put option?

• A) Maximum of zero or exercise price − stock price
• B) Maximum of zero or stock price − exercise price
• C) Stock price − exercise price
• D) Exercise price − stock price

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Definitions:

Center Plate

A key component in the articulation systems of rail vehicles or trailers, serving as a pivot point and support between the bogie and the vehicle body.

Drive Pins

Drive pins are fasteners used to secure two parts together, typically installed by driving the pin into a pre-drilled hole to create a secure connection.

Clutch Discs

Clutch discs are components of a clutch assembly in vehicles, made of a friction material that engages and disengages the engine from the drivetrain.

Rollers

Cylindrical components designed to facilitate movement or transfer of materials or objects by rolling them across surfaces.