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Options
- A
The current price of the asset is more than the specified strike price
-
The current price of the asset is less than the specified strike price
Correct answer
- C
The current price of the asset is the same as the specified strike price
- D
In all the above circumstances CORRECT ANSWER: The current price of the asset is less than the specified strike price
Why this is the answer
A put option gives the buyer the right to sell at the strike price. It’s beneficial when the market price is below the strike price, allowing the buyer to sell high and buy low.
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