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.

---

Definitions:

American Strategy Specialist

A professional focusing on developing and applying strategies within the context of American business environments or markets.

Italian Affiliate

A branch, subsidiary, or partner company located in Italy that is connected to a larger organization based in another country.

Diverse Workforce

A workforce composed of individuals from a variety of backgrounds, including ethnicity, gender, age, sexual orientation, and cultural perspectives.

Culturally Diverse Employees

Employees who come from a variety of cultural backgrounds, enhancing the workplace with a broad range of perspectives, experiences, and skills.