The holder of a put option will ________ if the terminal asset price is below the exercise price
A)Make a loss
B)Eliminate the risk
C)Make a gain
D)Make neither a gain nor a loss

Question

Quizplus · Accepted Answer

If the terminal asset price is below the exercise price, the holder of a put option will make a gain because they can sell the asset at the exercise price and buy it back at the lower market price.

The Holder of a Put Option Will ________ If the Terminal