Consider Two Put Options Differing Only by Exercise Price

question 44

Multiple Choice

Consider two put options differing only by exercise price.The one with the higher exercise price has

• A)the lower breakeven and lower profit potential
• B)the lower breakeven and greater profit potential
• C)the higher breakeven and greater profit potential
• D)the higher breakeven and lower profit potential
• E)the greater premium and lower profit potential

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