The author states that "If one buys puts to lock in a floor price, he wants those puts to expire worthless." What is the reasoning behind this statement? In other words, what is happening in the market when your puts are worthless (i.e. zero premium) and why would this be good for you?

Answer rating: 100% (QA)

ANSWER I The reasoning behind the statement is that if someone buys put options to lock in a floor p... View the full answer