What is the meaning of you have sold a European put option on a stock with maturity

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What is the meaning of you have sold a European put option on a stock with maturity 1 year and strike price of $20?

a. You have the obligation to buy the stock for $20 at the end of 1 year if the stock is below $20.

b. You have the right to sell the stock for $20 at the end of 1 year.

c. You have the obligation to sell the stock for $20 at the end of 1 year if the stock is below $20.

d. You have the right to sell the stock for $20 anytime during 1 year.

Related Book For answer-question

Brock Biology of Microorganisms

ISBN: 978-0321897398

14th edition

Authors: Michael Madigan, John Martinko, Kelly Bender, Daniel Buckley

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Posted Date: May 12, 2022 01:39 AM

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What is the meaning of you have sold a European put option on a stock with maturity

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The option a is right option Explanation The seller of any option either call or put ha... View the full answer

Brock Biology of Microorganisms

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