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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Definitions:

Mental Hospitals

Healthcare facilities specializing in the treatment and care of individuals with mental health disorders.

Mentally Ill

Refers to individuals suffering from mental disorders that affect their mood, thinking, and behavior.

Psychosocial Model

A theoretical approach considering both psychological and social factors in understanding and treating individuals.

Mental Disorders

Conditions characterized by significant disturbances in thoughts, emotions, or behavior, affecting functioning and quality of life.