You Write a Put Option on a Share

question 47

Multiple Choice

You write a put option on a share. The profit at contract maturity of the option position is ________ where X equals the option's strike price, ST is the share price at contract expiration and P0 is the original premium of the put option.

• A)Max(P₀, X - S_T - P₀)
• B)Min(-P₀, X - S_T - P₀)
• C)Min(P₀, S_T - X + P₀)
• D)Max(0, S_T - X - P₀)

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Definitions:

War Veterans

Individuals who have served in the armed forces, especially those who have served in combat, and may face unique health and social challenges as a result of their military service.

Risk Of Suicide

The likelihood or propensity of an individual to engage in behaviors that could lead to their own death, often assessed in those with mental health conditions.

Nonveterans

Individuals who have not served in the military.

Psychological Disorder

A disorder characterized by patterns of thought, behavior, or emotions that are significantly distressing or disabling in social, work, or other areas of functioning.