Use the Figure for the Question(s)below

question 21

Multiple Choice

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

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

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Definitions:

Bulimia

A disorder marked by cycles of excessive eating and then purging to avoid putting on weight.

Metropolitan Insurance Company

A hypothetical or specific company that provides insurance services to individuals and businesses in urban and metropolitan areas.

Ideal Weight

The optimal body weight for an individual's height and body type, associated with maximum health benefits.

Diet

The combination of foods and beverages consumed by an individual, often considered in terms of nutritional quality and balance.