Question

The following graph illustrates buying a put. Question options: True False

The following graph illustrates buying a put.

Question options:

True
False
0 0
Add a comment Improve this question Transcribed image text
Answer #1

False.

X-axis represents Prices at the expiration date and y -axis represents Profit

Put can have a max loss of Premium paid if Option not exercised. Here Max loss shown is 0, which is not true. Also stock Prices can not go negative which is shown here.

Graph of Put buyer looks like this.

Add a comment
Know the answer?
Add Answer to:
The following graph illustrates buying a put. Question options: True False
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
Active Questions
ADVERTISEMENT