The maximum:
A)profit from buying a put is the stock price.
B)loss from writing a put is the option premium.
C)profit from writing a call is the strike price.
D)loss from buying a call is $0.
E)profit from writing a put is the option premium.

Question

Quizplus · Accepted Answer

The maximum profit from writing (selling) a put option is the premium received for selling the option. This is because if the stock price stays above the strike price, the option will not be exercised, and the writer gets to keep the premium.

The Maximum