You Own a Put Option on Phosfranc Inc

question 91

Multiple Choice

You own a put option on Phosfranc Inc. stock with a strike price of $50. The current stock price is $50. In which of the following cases your benefit will increase?

• A) If the stock price goes up
• B) If the stock price goes down
• C) If the stock price stays the same
• D) Benefit is indifferent to the changes in the stock price.

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Definitions:

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The UN Human Development Index is a statistical tool used to measure a country's overall achievement in its social and economic dimensions, such as health, education, and standard of living.