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Which of the following is a difference between buying a put option and selling a call option? Buying a put option is advantageous when the
Which of the following is a difference between buying a put option and selling a call option?
- Buying a put option is advantageous when the underlying asset price rises, while selling a call option is advantageous when the underlying asset price falls.
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- Buying a put option limits potential losses and selling a call option also limits potential losses.
- Buying a put option requires the buyer to deliver the underlying asset, while selling a call option does not require the seller to deliver the underlying asset.
- Buying a put option gives the buyer the right to sell the underlying asset, while selling a call option requires the seller the obligation to sell the underlying asset.
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