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If the Value of the Underlying Asset Is Well Above

Question 88

Multiple Choice

If the value of the underlying asset is well above the exercise price of put option then:


A) it is likely that the option will be exercised by the buyer.
B) the exercise price remains constant irrespective of the change in the value of the underlying asset.
C) the value of the option is directly proportional to the value of the underlying asset.
D) the seller of the option will most likely make a profit.

Correct Answer:

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