Eric has an option position on Langdon stock that results in a zero dollar payoff when the stock price is equal to or greater than the option strike price.What did he do to obtain this position?
A)Purchased a call option
B)Purchased a put option
C)Wrote a call option
D)Wrote a put option
E)No option position would have this result.

Question

Quizplus · Accepted Answer

Eric wrote a put option with a strike price equal to or greater than the current stock price, resulting in a zero dollar payoff if the stock price is equal to or greater than the option strike price.

Eric Has an Option Position on Langdon Stock That Results