An Investor (The Buyer) Purchases a Put Option from a Seller

question 2

Multiple Choice

An investor (the buyer) purchases a put option from a seller. On the expiration date of a put option:

• A) the buyer has the obligation to sell the underlying asset and the seller has the right to buy it.
• B) the buyer has the obligation to sell the underlying asset and the seller has the obligation to buy it.
• C) the buyer has the right to sell the underlying asset and the seller has the obligation to buy it.
• D) the buyer has the right to buy the underlying asset and the seller has the right to sell it.

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Definitions:

Energy Economics

A branch of economics that studies the use, distribution, and production of energy resources, as well as the economic impacts of energy policy.

Energy Scarcity

The lack of sufficient available energy resources to meet the demands of consumption.

Crude Oil

A naturally occurring, unrefined petroleum product used as a raw material for fuel and other chemical products.

Per Capita Energy Consumption

Per Capita Energy Consumption measures the average amount of energy used per person within a specific area or country, indicating the level of energy efficiency and lifestyle standards.