The Writer of a Put

question 34

Multiple Choice

The writer of a put

• A) accepts the obligation to sell a predetermined number of shares at a predetermined price.
• B) is betting the price of the underlying security will increase in value.
• C) is hoping that the put will be in-the-money prior to expiration.
• D) will pay the premium whether or not the option is exercised.

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Definitions:

Market Research

The process of gathering, analyzing, and interpreting information about a market, including information about consumers and competitors, to inform business decisions.

Recruitment Efforts

The activities and strategies employed by organizations to attract and hire candidates for open positions.

Crisis Communications

The strategy and process of communicating during a crisis situation to manage and mitigate its impact on an organization or entity.

Computer Viruses

Malicious software programs designed to infect and harm computers and other devices, often spreading from one to another.