Question: Section A1 - Corporate Risk Management ! Q1 to Q7 relate to the following pay-off diagram: 12 10 Profit or loss ($) 5 10 13

Section A1 - Corporate Risk Management ! Q1 to Q7 relate to the following pay-off diagram: 12 10 Profit or loss ($) 5 10 13 15 20 25 Share price at option expiration (S) Question 1 (1 point) Which of the following best describes the pay-off diagram depicted? Purchasing a put option Purchasing a call option

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