Eric Has an Option Position on Langdon Stock That Results

question 33

Multiple Choice

Eric has an option position on Langdon stock that results in a zero dollar payoff when the stock price is equal to or greater than the option strike price.What did he do to obtain this position?

• A)Purchased a call option
• B)Purchased a put option
• C)Wrote a call option
• D)Wrote a put option
• E)No option position would have this result.

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