On the Expiration Day,the Maximum Price of a Put Option

question 89

Multiple Choice

On the expiration day,the maximum price of a put option on a stock is the greater of the:

• A)stock price minus the exercise price,or 0.
• B)the exercise price or 0.
• C)exercise price minus the stock price,or 0.
• D)stock price or 0.
• E)exercise price or the stock price.

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Definitions:

Antidepressants

Medications prescribed to relieve symptoms of depression by balancing chemicals in the brain that affect mood and emotions.

Tardive Dyskinesia

A neurological disorder characterized by involuntary, repetitive movements of the face and body, often as a side effect of long-term use of certain psychiatric drugs.

Traditional Antipsychotic Drugs

Medications primarily used to manage psychosis, especially in schizophrenia and bipolar disorder, characterized by their dopamine antagonist properties.

Spastic Movements

Involuntary muscle contractions that are often sudden and uncontrolled, typically resulting from neurological or muscular disorders.