8) The writer of a put option _______________. a. agrees to sell shares at a set price if the option holder desires b. has the right to buy shares at a set price

c. agrees to buy shares at a set price if the option holder desires d. has the right to sell shares at a set price

10) You purchase one IBM October 170 put contract for a premium of $9.25. What is your maximum possible profit? (See Figure 15.1.) Assume each contract is for 100 units.

Potential profit

$