If you draw the payoff for a short put: (we are selling a 100 put for 8), the shape of the diagram will most closely resemble: O An inverted V with the tip at (100, 0) O AV shape with the tip at (100, 0) O Downward sloping line followed by a horizontal line O Upward sloping line followed by a horizontal line O Horizontal line followed by an upward sloping line
If you draw the payoff for a short put: (we are selling a 100 put for 8), the shape of the diagram will most closely resemble: O An inverted V with the tip at (100, 0) O AV shape with the tip at (100, 0) O Downward sloping line followed by a horizontal line O Upward sloping line followed by a horizontal line O Horizontal line followed by an upward sloping line
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:If you draw the payoff for a short put: (we are selling a 100 put for 8), the shape of the diagram will
most closely resemble:
An inverted V with the tip at (100, 0)
O AV shape with the tip at (100, 0)
O Downward sloping line followed by a horizontal line
O Upward sloping line followed by a horizontal line
Horizontal line followed by an upward sloping line
Horizontal line followed by a downward sloping line
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