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:

Vulnerable

Susceptible to physical or emotional harm or attack due to being in a position of less power or having fewer defenses.

Disclosure

The act of making new or confidential information known, which can relate to personal, financial, or legal matters.

Bad Manners

Inappropriate, rude, or impolite behaviors in social settings.

Talking Back

Responding defiantly or argumentatively, often considered disrespectful, especially in contexts of authority.