The Buyer of a Put Option, According to Partnoy, Wants

question 9

Multiple Choice

The buyer of a put option, according to Partnoy, wants the price of it to __________, whereas the seller of the option wants it to __________.

• A) stay the same, go up
• B) stay the same, go down
• C) go down, stay the same or go down
• D) go up, go down
• E) go down, stay the same or go up

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Definitions:

Exculpatory Clause

A clause in a contract that releases a party from liability for his or her wrongful acts. These clauses are not favored by law.

Geographical Area

Refers to a specific physical region or location defined by natural or artificial borders.

Minor

A person under the legal age of adulthood, which varies by jurisdiction, typically below 18 years old.

Apprentice

A person who is learning a trade from a skilled employer, having agreed to work for a fixed period at low wages.