The maximum
A) Profit from writing a put is the option premium
B) Loss from buying a call is zero
C) Profit from writing a call is the exercise price
D) Loss from writing a put is the option premium
E) Profit from buying a put is the stock price

Question

Quizplus · Accepted Answer

The maximum profit from writing a put option is the option premium that the writer receives upfront. This is because the writer keeps the premium as profit if the option expires worthless or if the option is not exercised.

The Maximum