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.

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