SIE practice questionhardMax gain/loss calculations
A long put with a $25 strike is purchased for $2. What is the maximum gain per share?
- AUnlimited
- B$27
- C$2
- D$23✓ Correct answer
Explanation
Why D — $23
Max gain is strike minus premium ($25-$2=$23). Unlimited gain is not possible for puts, C is max loss.
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