The second law of indices tells us that when dividing a number with an exponent by the same number with an exponent, we have to subtract the powers. The a represents the number that is divided by itself and m and n represent the powers. Here is an example for this rule.
LAW 2: The second law of indices tells us that when dividing a number with an exponent by the same number with an exponent, we have to subtract the powers. In algebraic form, this rule is as follows . The a represents the number that is divided by itself and m and n represent the powers.
The put option will be exercised only if the final price is below the strike price. If the final price exceeds the strike price, there will simply be a loss equal to the cost of the option.
