Chapter 02 · Section 2.1

American Options - Q2

The holder of an American put has:

a) the right -not the obligation- to buy the underlying asset at a fixed price until the expiration date.
b) the right - not the obligation - to sell the underlying asset at a fixed price at maturity.
c) the obligation -but only if he is assigned- to sell the underlying asset at a specified price until maturity.
• d) the right - not the obligation - to sell the underlying asset at a specified price until the expiration date.
  Yes. An American put option gives its holder the right to "put" (deliver) the underlying asset to the writer who must purchase it at a fixed price, at any point after the option is purchased until the option expires. Continue

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