Suppose an Investor Sells (Writes)a Put Option

question 37

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 the option.
• D)The option will extend for nine more months.

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Definitions:

Ethical Conflicts

Situations where individuals face dilemmas involving moral principles or values.

Ethical Standards

Moral principles that guide the behavior and decision-making process of individuals and organizations.

Constituents

Individuals or groups represented by an elected official or a member of a community with a common interest.

Integrity

Adhering to deeply felt ethical principles in business situations.