Use the figure for the question(s)below.
-This graph depicts the payoffs of a:
A)short position in a put option at expiration.
B)short position in a call option at expiration.
C)long position in a put option at expiration.
D)long position in a call option at expiration.
E)long position in a call option before expiration.

Question

Use the figure for the question(s)below. 
-This graph depicts the payoffs of a:
A)short position in a put option at expiration. 
B)short position in a call option at expiration. 
C)long position in a put option at expiration. 
D)long position in a call option at expiration. 
E)long position in a call option before expiration.

Quizplus · Accepted Answer

The graph represents a short position in a call option at expiration, where the payoff increases as the underlying asset's price decreases, and the seller of the call option faces unlimited losses as the price of the underlying asset increases beyond the strike price.

Use the Figure for the Question(s)below