You purchase one microsoft july $72 put contract for a premium of $1. 32. what is your maximum possible profit?
1 answer:
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Given:
The function is
To find:
The rate of change of the given function.
Solution:
We have,
...(i)
It is a linear function because the degree or power of x in this function is 1.
Slope of a linear function is always constant.
The slope intercept form of a linear function is
...(ii)
where, m is slope and b is y-intercept.
On comparing (i) and (ii), we get
It means, the function has a constant rate of change, decreasing for all x at a rate of 5.
Therefore, the correct option is D.