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

A long position in a put option at expiration has a payoff that increases as the underlying asset's price decreases, which matches the description of the graph.

Use the Figure for the Question(s)below