Use the Figure for the Question(s)below

question 29

Multiple Choice

Use the figure for the question(s) below.
-This graph depicts the payoffs of:

• A)a short position in a put option at expiration.
• B)a short position in a call option at expiration.
• C)a long position in a put option at expiration.
• D)a long position in a call option at expiration.

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Definitions:

Vital Capacity

Greatest volume of air that can be exhaled from the lungs after a maximum inspiration.

Compliance

Change in volume (e.g., in lungs or blood vessels) caused by a given change in pressure.

Pulmonary Edema

An accumulation of fluid in the lungs' air sacs, leading to impaired gas exchange and potentially causing difficulty breathing.

Respiratory Membrane

The respiratory membrane is the thin barrier in the lungs where gas exchange occurs, allowing oxygen to enter the blood and carbon dioxide to be expelled.