The main feature of the potential profit and loss profile for a long put party may be best described as:

Question

Quizplus · Accepted Answer

The main feature of the potential profit and loss profile for a long put option is that profits are made when the spot price falls below the exercise price, adjusted for the premium paid for the option. This is because a put option gives the holder the right to sell the underlying asset at the exercise price, so if the market price falls below this level, the option can be exercised profitably, taking into account the cost of the premium.

The Main Feature of the Potential Profit and Loss Profile