Zasha Wrote a Put Option on Johnson & Johnson Stock

question 116

Multiple Choice

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

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

---

Definitions:

Child

A young human being, typically one who has not yet reached puberty.

Teach

To impart knowledge or skills to someone through instruction or practical demonstration.

Psychology

The scientific study of the mind and behavior, aiming to understand how individuals think, feel, and act both individually and within groups.

World War II

A global conflict that lasted from 1939 to 1945, involving many of the world's nations split into two opposing alliances: the Allies and the Axis.