Under What Circumstance Will the Buyer of a Put Option

question 117

Multiple Choice

Under what circumstance will the buyer of a put option be asked to fulfill her obligation?

• A) When the stock price has declined below the strike price
• B) When the stock price has increased above the strike price
• C) The put buyer has an equal obligation regardless of the relationship between stock and strike prices.
• D)The put buyer has no obligation whatsoever.

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Definitions:

Karl Marx

A 19th-century philosopher, economist, and political theorist known for his critique of capitalism and his influence on the development of socialist thought.

Friedrich Engels

A 19th-century German philosopher, social scientist, and co-author with Karl Marx of various works, including "The Communist Manifesto," known for his contributions to Marxist theory.

Social Analysis

The examination and critical evaluation of social structures, interactions, and dynamics to understand societies and their complexities.

Enlightenment Thinkers

Intellectuals of the Enlightenment period who advocated for reason, science, and secularism as the paths to knowledge, freedom, and progress.