Under What Circumstance Will the Buyer of a Put Option

question 38

Multiple Choice

Under what circumstance will the buyer of a put option be asked to perform 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.

Recognize the significance of meeting preparation, including agenda setting and accommodating all participants.

Realize the importance of open and positive communication in enhancing team productivity.

Know the impact of participation in planning and decision-making on employee responsibility and team productivity.

Understand the wrong approaches in steering a meeting back on track and the correct ways to focus meetings on expected outcomes.

---

Definitions:

Semiannually

Occurring twice a year; every six months.

Zero-coupon Bond

A type of bond that does not pay interest during its life; it is sold at a discount from its face value and the return is realized when the bond matures.

Deep Discount

A situation where a bond or other investment is sold significantly below its par or face value.

Yield To Maturity

The total return expected on a bond if it is held until its maturity date, including all interest payments and capital gains or losses.