n NISM Certifications
XIII NISM Series XIII
Medium

After reaching the breakeven point, how does the spot price affect the profitability of a long put option?

Practice question from NISM Series XIII for SIF - Mock Test 10 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. Option value decreases with an increase in spot price

    Correct answer

  2. B

    Option value increases with an increase in spot price

  3. C

    None of the above

A full explanation for this question is being written. In the meantime, the correct answer is highlighted above.

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