Question 18
What option position results in the profit diagram as given in the figure, on the exercise date? ST denotes the price of the underlying asset and X denotes the strike price.
Long call
Short call
Long put
Short put
What option position results in the profit diagram as given in the figure, on the exercise date? ST denotes the price of the underlying asset and X denotes the strike price.
Long call
Short call
Long put
Short put
Correct answer
Short call
Question 18 of 30 in the IIT Madras BS Corporate Finance (Corporate Finance) End Term paper sat on 21 Dec 2025, in the September 2025 term (Corporate Finance 18 Dec 25). It carries 3 marks.