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:

Synovial Joint

A type of joint that is surrounded by a fluid-filled capsule, allowing for smooth movement between bones.

Periosteum

A dense, fibrous membrane covering the outer surface of bones, providing nourishment and involved in bone growth and repairing.

Synovial Cavity

A fluid-filled space that exists between bones that are encapsulated by a synovial membrane, aiding in smooth movement of the joints.

Articular Surfaces

The surfaces of bones that come into contact with one another to form joints, often covered with cartilage to reduce friction.