Suppose You Have Sold a Put Option on a Share

question 23

True/False

Suppose you have sold a put option on a share with a strike price of $25. If the share price at expiration is $30, your pay-off will be $-5.

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Definitions:

Heroin

A potent opioid drug derived from morphine, often used illicitly for its euphoric effects.

Opium

A narcotic drug obtained from the sap of the opium poppy, used historically both as a painkiller and recreationally, and known for its potent addictive properties.

Depressants

A category of drugs that reduce neural activity and slow down the functions of the body, often used to induce calmness and sleep.

Central Nervous System

The part of the nervous system that consists of the brain and spinal cord, responsible for integrating sensory information and responding accordingly.