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1, You short a put with strike K. The underlying price at expiration is S. What's your payoff? a, S - K if K >
1, You short a put with strike K. The underlying price at expiration is S. What's your payoff?
a, S - K if K > S and zero otherwise
b, 0
c, K - S
d, S - K
2, What's the payoff at maturity to a long call with strike K and underlying asset price S?
a, max(S-K,0)
b, min(S-K,0)
c, max(K-S,0)
d, min(K-S,0)
3, What's the payoff at maturity to a long put with strike K and underlying asset price S?
a, max(K-S,0)
b, max(S-K,0)
c, min(S-K,0)
d, min(K-S,0)
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