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Basic Question 18 of 18
Suppose an investor sells a put option. What will happen if the stock price on the exercise date exceeds the exercise price?
B. The seller will be obliged to buy stock from the owner of the option.
C. The owner will not exercise his option.
A. The seller will need to deliver stock to the owner of the option.
B. The seller will be obliged to buy stock from the owner of the option.
C. The owner will not exercise his option.
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Learning Outcome Statements
determine the value at expiration and profit from a long or a short position in a call or put option
contrast forward commitments with contingent claims
CFA® 2025 Level I Curriculum, Volume 5, Module 2.