The Payoff to the Holder of a Put Option Is

question 33

Multiple Choice

The payoff to the holder of a put option is ________.

• A) strike price minus stock price if stock price is more than strike price
• B) strike price minus stock price if stock price is less than strike price
• C) stock price minus strike price if stock price is less than strike price
• D) stock price minus strike price if stock price is more than strike price

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Definitions:

Conservation Concept

In cognitive development, the understanding that properties such as mass, volume, and number remain the same despite changes in the forms or appearances of objects.

Cognitive Development

The progression of learning and development of mental processes, such as thinking, reasoning, and problem-solving, from infancy through adulthood.

Object Permanence

The understanding that objects continue to exist even when they cannot be seen, heard, or touched, an important developmental milestone in infants.

Preoperational Stage

A stage in Jean Piaget's theory of cognitive development, occurring from approximately age 2 to 7, characterized by symbolic thinking, egocentrism, and a lack of logical reasoning.