The Price That the Buyer of a Put Option Receives

question 84

Multiple Choice

The price that the buyer of a put option receives for the underlying asset if she executes her option is called the

• A) strike price.
• B) exercise price.
• C) execution price.
• D) strike price or execution price.
• E) strike price or exercise price.

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Definitions:

Pain

An unpleasant sensory and emotional experience associated with actual or potential tissue damage.

Cochlear Implant

A medical device that bypasses damaged parts of the inner ear and directly stimulates the auditory nerve to provide a sense of sound.

Auditory Nerve

The cranial nerve that transmits sound information from the inner ear to the brain, enabling hearing.

Electrical Signals

Pulses or waves of electrical activity that transmit information through neurons or between electronic devices.