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Unformatted text preview: D) acquires the opportunity to sell shares at a set price 3. The most negative payoff that could be occur for the writer of a put option is ______________. A) zero B) equal to the exercise price of the put C) equal to the price of the underlying stock on the option's expiration date D) unlimited 4, Call options on IBM stock options are ___________. A) created by investors B) issued by IBM corporation C) issued by the Federal Reserve D) all of the above 1 Answer: C 2 Answer: B 3 Answer: B 4 Answer: A...
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- Spring '08
- Derivative, Expiration date, Strike price