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  3. buyers of put options receive a payoff equal to 0

Buyers of put options receive a payoff equal to 0 when__________ ...

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Question

Finance

Buyers of put options receive a payoff equal to 0 when__________

the price of the underlying security is 0.

they exercise the options.

the price of the underlying security is lower than the strike price.

the price of the underlying security exceeds the strike price.

You will have to buy an Apple share within the next six months. You think the price will continue to get cheaper over time. But you are worried that the price may rise, in which case the share might be too costly. What type of order should you place?

a stop buy order.

a limit sell order.

a market buy order

a limit buy order.

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