Which of the Following Statements Concerning Put Options Are Correct

question 87

Multiple Choice

Which of the following statements concerning put options are correct?

• A) The writer of a put profits if the price of the underlying stock rises.
• B) The writer of a put profits if the price of the underlying stock falls.
• C) The owner of a put profits if the price of the underlying stock rises.
• D) Both the owner and writer of a put profit when the price of the underlying stock falls.

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Definitions:

Psychodynamic Perspective

A psychological approach that emphasizes the systematic study of the psychological forces that underlie human behavior, feelings, and emotions and how they might relate to early experience.

Dissociative Identity Disorder

A severe form of dissociation characterized by the presence of two or more distinct personality states or identities in a single individual.

Anxiety

A feeling of worry, nervousness, or unease about something with an uncertain outcome, often accompanied by physical symptoms.

Hallucinations

Perception-like experiences that occur without an external stimulus, vivid and clear with the full force and impact of actual perceptions, and not under voluntary control.