The Maximum

question 67

Multiple Choice

The maximum

• A) Profit from writing a put is the option premium
• B) Loss from buying a call is zero
• C) Profit from writing a call is the exercise price
• D) Loss from writing a put is the option premium
• E) Profit from buying a put is the stock price

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Definitions:

Binding

Having the effect of a legal obligation that must be adhered to; able to enforce a legal obligation.

Postbox Rule

A legal principle that specifies the exact moment a contract is considered accepted, which is when an acceptance is communicated, even if it has not yet been received by the offeror.

Click-Wrap

A type of agreement where acceptance of terms or conditions is done by clicking on an "I agree" button on a webpage.

Online Communications

Involves the exchange of messages, information, or documents through the internet or electronic devices.