The Profit or Loss on a Short Put at Expiry

question 14

Multiple Choice

The profit or loss on a short put at expiry is equal to:

• A)Option premium - (maximum of (X - S)or zero)
• B)Option premium + (maximum of (X - S)or zero)
• C)Option premium - (maximum of (S - X)or zero)
• D)Option premium + (maximum of (S - X)or zero).
• E)Cannot be negative.

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Definitions:

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