Which of the following statements are correct?
1. A put option is said to bein the money or favourable for the option holder when the strike price is higher than the spot price.
2. A put option is said to be out of money when the strike price is lower than the market price.
3. Fir an option writer the maximum gain is the amount of premium received by the put option holder.

Which of the following statements are correct?
1. A put option is said to bein the money or favourable for the option holder when the strike price is higher than the spot price.
2. A put option is said to be out of money when the strike price is lower than the market price.
3. Fir an option writer the maximum gain is the amount of premium received by the put option holder. Correct Answer Both 1 and 3

Related Questions

In the question below is given a statement numbered I, II and III. An assumption is something supposed or taken for granted. You have to consider the following assumption and decide which of the assumption is implicit in the statement. Statement: Summer is slowly fading away, but the sales of super premium and craft beers continue to sizzle. And now the FIFA World Cup football in Russia, as many football fans head out to the pubs every evening to watch matches, is adding some more fizz to the market. For young millennials, especially in Indian metros, it’s also time to seek out new craft and super-premium beers. According to a report by Euromonitor International last year, there is likely to be a further rise of craft beers in India this year. The report says that the huge success of B9 Beverages’ Bira 91 is expected to further encourage many global players to introduce their own craft beers.  Assumptions: I. Additionally, with this category being largely underdeveloped, many new players are also expected to emerge.  II. Likewise, a recent report by BMI Research of Business Monitor International, too, sees a strong growth for the beer market in India in 2018 on the back of changing cultural attitudes and a young, increasingly affluent population, demand for premium and craft beers is rapidly emerging. III. With growth in demand from Indian beer connoisseurs, who don’t mind paying a premium, it’s no surprise that importers and local brewers have launched over 20 new and fresh flavours this summer, including niche craft beers produced in small breweries.
A sum of money was divided among A, B and C. The amount received by A and C together is equal to the amount received by B alone. If A received 40% of the amount which B had received, find the ratio in which the amount was divided and the total amount.
A sum of money is divided among A, B, C and D. The amount received by A and B together is 50% of the amount received by C and D together. C got 140% of the amount received by B and A got 60% of the amount received by B. Find the ratio in which the amount was divided?