The profit for a long put is higher for a given stock price if the put is sold back prior to expiration.

Name: The profit for a long put is higher for a given stock price if the put is sold back prior to expiration.
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Question

Quizplus · Accepted Answer

When a long put option is sold back prior to expiration, the investor can receive a higher price for the option than if they were to let it expire. This results in a higher profit for the investor. Therefore, the statement is true.

The Profit for a Long Put Is Higher for a Given