Suppose an Investor Sells (Writes) a Put Option

question 39

Multiple Choice

Suppose an investor sells (writes) a put option. What will happen if the stock price on the exercise date exceeds the exercise price?

• A) The seller will need to deliver stock to the owner of the option
• B) The seller will be obliged to buy stock from the owner of the option
• C) The owner will not exercise his option
• D) None of the above

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