The Writer of a Put Option

question 17

Multiple Choice

The writer of a put option

• A)has the right, but not the obligation, to sell shares of the underlying asset.
• B)has the right, but not the obligation, to buy shares of the underlying asset.
• C)is obliged to buy shares of the underlying asset if the put holder chooses to exercise the option.
• D)is obliged to sell shares of the underlying asset if the put holder chooses to exercise the option.

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Definitions:

Physical Traits

Characteristics that are observable and measurable, mainly pertaining to the body.

Creativity

The ability to produce original and unusual ideas, or to make something new and imaginative.

Flexibility

The capacity to adapt, change, and be versatile in response to different circumstances or demands.

Shared Goals

Objectives that are collectively agreed upon or pursued by a group, team, or organization, aiming to foster unity and collaboration among members.