Which of the Following Is NOT True for the Writer

question 27

Multiple Choice

Which of the following is NOT true for the writer of a put option?

• A) The maximum loss is limited to the strike price of the underlying asset less the premium.
• B) The gain or loss is equal to but of the opposite sign of the buyer of a put option.
• C) The maximum gain is the amount of the premium.
• D) All of the above are true.

---

Definitions:

Promotion Program

A organized effort by a business to increase awareness, sales, or engagement with its products or services.

Four Ws

A framework often used in project planning and reporting, referring to Who, What, Where, and Why, detailing the parties involved, activities, locations, and reasons respectively.

Budget

A financial plan for a defined period, often one year.