The Writer of a Put Option on a Stock

question 14

Multiple Choice

The writer of a put option on a stock

• A) Has the right but not the obligation to sell the stock.
• B) Has the right but not the obligation to buy the stock.
• C) Has the obligation but not the right to sell the stock.
• D) Has the obligation but not the right to buy the stock.

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Definitions:

Particular Method

A specific way or technique applied to accomplish a certain task or to tackle a certain problem.

Overcoming Weaknesses

This process involves identifying personal or organizational limitations and actively working to improve or mitigate these areas to achieve better outcomes or enhance performance.

Several Methods

indicates a variety of techniques or procedures employed to achieve a specific goal or solve a problem.

Reactivity

The tendency of a substance to undergo chemical reaction, either by itself or with other materials, and release energy.