Option Payoffs: What Is the Payoff for a Put Option

question 65

Multiple Choice

Option payoffs: What is the payoff for a put option with a strike price of $65 if the underlying stock price at expiration is $33?

• A) $0
• B) $33
• C) $32
• D) $65

Examine the biological correlates of aggression.

Discuss the phenomena related to bystander intervention and social responsibility.

Recognize persuasion strategies and their implications on decision-making.

Understand the role of mood and reciprocal expectations in compliance behavior.

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Definitions:

Price Elasticity

A measure of the responsiveness of the quantity demanded or supplied of a good or service to a change in its price.

Price Elasticity

An indicator of the sensitivity of demand for a product to variations in its price.

Relatively Inelastic

Describes a demand characteristic where a change in price leads to a smaller proportionate change in quantity demanded.

Excise Tax

A tax levied on specific goods, services, or transactions, often imposed on items such as alcohol, tobacco, and gasoline.