At Contract Maturity the Value of a Put Option Is

question 83

Multiple Choice

At contract maturity the value of a put option is ___________ where X equals the option's strike price and S_T is the stock price at contract expiration.

• A) Max(0, S_T - X)
• B) Min(0, S_T - X)
• C) Max(0, X - S_T)
• D) Min(0, X - S_T)

---

Definitions:

Affluent Society

A term describing a society that has a high level of wealth and consumption, often associated with high living standards and disposable income.

Low Cost

A strategy or condition of minimizing expenses to offer products or services at a competitive price point.

Focus Strategy

A competitive strategy where a company chooses to serve a particular segment or group of segments within a market, tailoring its products or services to better satisfy the specific needs of those segments.

Service Productivity

A measure of the efficiency of a service operation, typically calculated as the ratio of outputs (services provided) to inputs (resources consumed) in rendering the service.