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:

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