Consider buying put option, if price is lower at expiration date of option then the

A. liquidity will be higher

B. loss will be higher

C. profit will be lower

D. profit will be higher

Answer: Option D

Solution(By Examveda Team)

Consider buying put option, if price is lower at expiration date of option then the profit will be higher. A person would buy a put option if they expected the price of the underlying futures contract to move lower. A put option gives the buyer the right to sell the underlying futures contract at an agreed-upon price called the strike price any time before the contract expires.