The Writer of a Put Option ________

question 34

Multiple Choice

The writer of a put option ________.

• A) agrees to sell shares at a set price if the option holder desires
• B) agrees to buy shares at a set price if the option holder desires
• C) has the right to buy shares at a set price
• D) has the right to sell shares at a set price

---

Definitions:

First And Second

Terms denoting the sequential order of events, items, phases, conditions, or priorities.

Revised Probabilities

Updated likelihoods, based on new evidence or information, that a particular event will happen.

Additional Information

Supplementary data or details provided to enhance understanding or clarification of a subject.

Posterior Probabilities

Posterior probabilities are the revised probabilities of events occurring after taking into consideration new evidence or information.