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:

Standard Form

A way of writing numbers, especially large numbers, by expressing them as a power of ten, or, in algebra, a way of writing equations.

Multiply

The operation of adding a number to itself a certain number of times, equivalent to repeated addition.

Standard Form

A way to write numbers using the digits 0-9, with each digit having a place value. In algebra, it refers to a way of arranging equations to a specific form.

Imaginary Unit

The imaginary unit, denoted as \(i\), is defined as the square root of \(-1\) and is foundational in complex number theory.