- CFA Exams
- CFA Level I Exam
- Topic 7. Derivatives
- Learning Module 46. Basics of Derivative Pricing and Valuation
- Subject 7. The Value of a European Option at Expiration
CFA Practice Question
A put option writer has ______.
A. unlimited downside potential
B. profit potential limited to the strike price
C. profit potential limited to the option premium
User Contributed Comments 2
| User | Comment |
|---|---|
| djop2002 | by writer they mean seller right?sorry im not english mother tongue...:-) |
| kellyyang | yes! you are right. Write=sell, e.g write a call is equal sell a call. |