Which of the Following Statements About Put Options Is Correct

question 11

Multiple Choice

Which of the following statements about put options is correct?

• A) If the option writer exercises the put option, the option holder has to sell the underlying asset to him or her.
• B) If the option writer exercises the put option, the option holder has to buy the underlying asset from him or her.
• C) If the option holder exercises the put option, the option writer has to buy the underlying asset from him or her.
• D) If the option holder exercises the put option, the option writer has to sell the underlying asset to him or her.

---

Definitions:

Autonomy Vs. Shame

A developmental stage in Erikson's psychosocial theory where toddlers learn to exercise will and do things independently, failing which they feel ashamed.

Emerging Adulthood

The transitional period from adolescence to adulthood, spanning approximately 18 to 25 years of age.

Wisdom

Expert knowledge about the practical aspects of life.

Ulna

One of the two long bones in the forearm, located on the side opposite the thumb, that forms the elbow joint with the humerus above and the wrist joint with the radius below.