Erin Wrote a Put Option on Verizon Stock with a Striking

question 57

Multiple Choice

Erin wrote a put option on Verizon stock with a striking price of $53 per share. At the expiration date, Verizon was selling for $50 per share. Which statement best describes the action that Erin should or must take?

• A) Erin will do nothing because the market price is lower than the striking price.
• B) Erin is obliged to buy the Verizon shares at $53, even though the market price $3.00 lower.
• C) Erin must sell the Verizon stock for $53 per share.
• D) Erin has the right to sell Verizon stock at $3.00 per share over the market price.

---

Definitions:

Infants

Very young children or babies, especially those from birth up to one year old.

Warmth, Love

Feelings of affection, kindness, and care towards others, often characterized by positive emotional connections.

Protection

Measures or actions taken to guard against harm, damage, loss, or unwanted outcomes.

Temperament

The innate or genetically influenced aspect of an individual's personality, such as introversion or extroversion, that affects their behavior and emotional reactions.