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.
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.
  No. The put writer has an obligation to buy - not to sell - the underlying asset, if the option is exercised by the put holder.
  d) gives the option holder the right - not the obligation - to sell the underlying asset at a specified price.

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