The Price That the Writer of a Put Option Receives

question 61

Multiple Choice

The price that the writer of a put option receives for the underlying asset if the option is exercised is called the

• A) strike price.
• B) exercise price.
• C) execution price.
• D) strike price or exercise price.
• E) None of the options are correct.

---

Definitions:

Equity Of Redemption

The right of a mortgagor to reclaim property by paying off the full amount of the mortgage plus any accrued interest and costs before foreclosure.

Home Equity Loan

A line of credit made available to homeowners based on the value of the property over and above any existing mortgages.

Court Action

Legal proceedings initiated in a court of law where a plaintiff brings a lawsuit against a defendant.

Repossessed

The act of a lender taking back an object, typically a vehicle or property, from the borrower due to failure to make the agreed-upon payments.