Why Would You Purchase a Put Option and What Is

question 24

Essay

Why would you purchase a put option and what is the maximum loss you can incur should you do so?

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Definitions:

M'Naghten Rule

A legal standard used to evaluate the criminal responsibility of a defendant deemed to be mentally disturbed.

Not Guilty

A legal judgment that asserts the defendant has not been proven to commit the offense they were charged with beyond a reasonable doubt.

Insanity

A legal and psychological term referring to a mental illness of such a severe nature that a person cannot distinguish fantasy from reality, or is unable to conduct her/his affairs due to psychosis, or is subject to uncontrollable impulsive behavior.

Tarasoff Case

A landmark legal case in the United States that established mental health professionals have a duty to warn individuals who are being threatened with bodily harm by a patient.