A Put Option

question 113

Multiple Choice

A put option:

• A)is an option that allows the writer to choose the time of exercise
• B)has intrinsic value if the market price is below the exercise price
• C)provides the writer with the right to buy the underlying asset at the exercise price
• D)provides the holder with the right to buy the underlying asset at the exercise price.
• E)None of these.

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Definitions:

Standard Deviation

A statistic that measures the dispersion or variability in a dataset relative to its mean, indicating how spread out the numbers are.

Mean

The arithmetic average of a set of values, calculated by dividing the sum of these values by the number of values.

Standard Deviations

A measure of the amount of variation or dispersion of a set of values, indicating how much individual data points differ from the mean.