If You Exercise a Put Option Prior to Expiration You

question 365

Multiple Choice

If you exercise a put option prior to expiration you ______________.

• A) Sell the asset underlying the option contract at the option strike price.
• B) Must have been the "writer" of the option when it was created.
• C) Will receive less than you would if you let the option run to maturity.
• D) Have behaved in a rational manner if the market price exceeds the strike price.
• E) Must own a European option.

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Definitions:

Energy Input

Refers to the energy required to produce goods and services, including electricity, fossil fuels, and renewable sources.

Per Capita Energy Use

The average amount of energy consumed per person in a given area or country.

Developed Countries

Nations with a high level of economic development, typically characterized by a high gross domestic product (GDP) per capita.

Leveled Off

A state where a variable, after a period of growth or decline, stabilizes and shows no significant change.