The Buyer of a Put Option on Shares

question 12

Multiple Choice

The buyer of a put option on shares:

• A) obtains the right to sell the shares at an agreed future time at their market price at that time
• B) must sell the shares at an agreed future time at a price determined now
• C) obtains the right to sell the shares at an agreed future time at a price determined now
• D) must sell the shares at an agreed future time at their market price at that time

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Definitions:

Disaster

A sudden event, such as an accident or a natural catastrophe, that causes great damage or loss of life.

Anticipate

To expect or predict something to happen in the future or to be prepared for an event or situation beforehand.

Hypomania

A mood state characterized by persistent disinhibition and mood elevation (euphoria), with behavior that is noticeably different from the person's typical behavior when not depressed.

Mild Mania

A less severe form of mania characterized by elevated mood, increased activity or energy levels, but not severe enough to cause significant impairment in social or occupational functioning.