Question

A speculator may write a put option on stock with an exercise price of $15 and earn a $3 premium only if they thought
A. the stock price would stay above $12.
B. the stock volatility would increase.
C. the stock price would fall below $18.
D. the stock price would stay above $15.
E. the stock price would rise above $18 or fall below $12.

Answer

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