At Contract Maturity the Value of a Put Option Is

question 58

Multiple Choice

At contract maturity the value of a put option is ________, where X equals the option's strike price and ST is the stock price at contract expiration.

• A) max (0, S_T − X)
• B) min (0, S_T − X)
• C) max (0, X − S_T)
• D) min (0, X − S_T)

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Definitions:

Market

A place or mechanism where buyers and sellers interact to trade goods, services, or information.

Geography

The study of the Earth's physical features, environment, and human-environment interactions.

Sales Potential

The maximum total sales of a product or service that could be achieved within a specific market over a given time period.

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