When a put option is exercised, the: Multiple Choice seller of the option receives the strike price.
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Question:
When a put option is exercised, the:
Multiple Choice
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seller of the option receives the strike price.
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seller of the option receives the option premium.
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buyer of the option sells the underlying asset and receives the option premium.
Incorrect -
buyer of the option pays the option premium and receives the underlying asset.
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seller of the option must buy the underlying asset and pay the strike price.
Related Book For
Introduction To Corporate Finance
ISBN: 9781118300763
3rd Edition
Authors: Laurence Booth, Sean Cleary
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