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mich of the following strategy can make profit from underlying price drop? A. Buying a put B. Selling a put C. Protective put D. Bullish
mich of the following strategy can make profit from underlying price drop? A. Buying a put B. Selling a put C. Protective put D. Bullish spread E. None above 7. Which of the following is the riskiest single-option transaction? A. Writing a call B. Buying a put C. Writing a put D. Buying a call E. Riskiness of the all the strategies above is the same 8. Which of the following combinations have similarly shaped profit/loss diagrams? A. Covered Call vs. a short stock combined with a long call B. long put option combined with a long call option vs. protective put C. long call option combined with a short put option vs. short a stock D. short call option vs. protective put E. None above 9. Suppose a put option has X=35 and Premium=10. For a strategy that sell this put, what is the minimum payoff and minimum profit? A. Minimum payoff=0, minimum profit=0 B. Minimum payoff=35, minimum profit=45 C. Minimum payoff=-35, minimum profit=-25 D. Minimum payoff--35, minimum profit=-45 E. None above of $75 will expire in 73 days. No cash payments will
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