The Writer of a Put

question 31

Multiple Choice

The writer of a put

• A) is hoping that the put will be in- the- money prior to expiration.
• B) accepts the obligation to sell a predetermined number of shares at a predetermined price.
• C) is betting the price of the underlying security will increase in value.
• D) will pay the premium whether or not the option is exercised.

---

Definitions:

Bleeding

The loss of blood from the circulatory system due to injury or illness.

Marketing Channel Functions

Refer to the various roles and tasks necessary for the movement of goods from the producer to the consumer, including logistics, information processing, and negotiation.

Manufacturer

A company that produces goods for sale.

Retailers

Businesses that sell goods or services directly to consumers.