What is the primary motivation for buying a put option?
To profit from a rising stock price
To hedge against potential losses in a long stock position
To benefit from a falling stock price
To generate income through premium collection
Qn. 1 / 5
Att - 0 / 5
Submit All
Powered by Apliro
↓
How is the intrinsic value of a put option calculated at expiry?
Spot Price - Strike Price
Strike Price - Spot Price
Premium Paid - Spot Price
Spot Price + Premium Paid
Qn. 2 / 5
Att - 0 / 5
Submit All
Powered by Apliro
↓
What is the maximum potential loss for a put option buyer?
Unlimited
The strike price
The spot price
The premium paid
Qn. 3 / 5
Att - 0 / 5
Submit All
Powered by Apliro
↓
When does a put option buyer start making a profit?
When the spot price is above the strike price
When the spot price is below the strike price
When the spot price is equal to the strike price
When the premium paid is recovered
Qn. 4 / 5
Att - 0 / 5
Submit All
Powered by Apliro
↓
What is the breakeven point for a put option buyer?
Strike Price + Premium Paid
Strike Price - Premium Paid
Spot Price - Premium Paid
Spot Price + Premium Paid
Qn. 5 / 5
Att - 0 / 5
Submit All
Powered by Apliro
↓