You own a share of Costco stock. You are worried that its price will fall and would like to insure yourself against this possibility. How can you purchase insurance against a fall in the price of the stock?

What is the maximum payoff that a long put option can have? How about a long call option?

*Can a call option be more valuable than the stock it is written on?

Why is an American option with a longer time to expiration generally worth more than an otherwise identical option with a shorter time to expiration?