You Write a Put Option on a Stock

question 51

Multiple Choice

You write a put option on a stock.The profit at contract maturity of the option position is ___________ where X equals the option's strike price,S_T is the stock price at contract expiration and P₀ is the original premium of the put option.

• A) Max(P₀, X - S_T - P₀)
• B) Min(-P₀, X - S_T - P₀)
• C) Min(P₀, S_T - X + P₀)
• D) Max(0, S_T - X - P₀)

---

Definitions:

Edit Data

The process or action of updating, correcting, or modifying existing data or information in a database, document, or file.

Upper Half

Generally refers to the top half portion of an object, area, or concept.

Lookup Source Property

A characteristic in some software systems that specifies the source from where to fetch or look up values.

Lookup Field

A field in a database that retrieves and displays data from another table or list, based on a defined relationship.