When a Put Option Is Exercised, The

question 80

Multiple Choice

When a put option is exercised, the:

• A)seller of the option receives the strike price.
• B)seller of the option receives the option premium.
• C)buyer of the option sells the underlying asset and receives the option premium.
• D)buyer of the option pays the option premium and receives the underlying asset.
• E)seller of the option must buy the underlying asset and pay the strike price.

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Definitions:

Retirement Age

The age at which an individual is eligible to leave their job or profession and begin to receive pension benefits, varying by country and occupation.

Deficit Years

Years in which a government's expenditures exceed its revenues, resulting in a budget deficit.

Trust Fund Bonds

Financial securities issued by a trust to raise capital, often backed by other assets.