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.
• d) gives the option holder the right - not the obligation - to sell the underlying asset at a specified price.
  Yes. A put option gives its holder the right to "put" (deliver) the underlying asset to the writer who must purchase it at the exercise price. Continue

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