Chapter 02 · Section 2.1

Put option

A put option:

• a) gives the option holder the right - not the obligation - to buy the underlying asset at a specified price.
  No. This is the case of a call option. We are talking about a put option here.
  b) gives the option writer the right - not the obligation - to buy the underlying asset at a specified price.
  c) gives the option writer the obligation - not the right - to sell the underlying asset at a specified price.
  d) gives the option holder the right - not the obligation - to sell the underlying asset at a specified price.

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