Suppose an Investor Sells (Writes)a Put Option

question 40

Multiple Choice

Suppose an investor sells (writes) a put option.What will happen if the stock price on the exercise date exceeds the exercise price?

• A)The seller will need to deliver stock to the owner of the option.
• B)The seller will be obliged to buy stock from the owner of the option.
• C)The owner will not exercise his option.
• D)The option will extend for nine more months.