When a put option is exercised, the: seller of the option receives the strike price. seller...
When a put option is exercised, the:
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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. |
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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. |
Homework Answers
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seller of the option must buy the underlying asset and pay the strike price. |
Buyer of the put has the right but no obligation to sell the asset. When the market price is below the strike price, buyer will sell the option at the strike price. Seller of the put option is obligated to buy the underlying asset and pay the strike price.
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When a put option is exercised, the:
seller of the option receives the strike price.
seller...
When a put option is exercised, the: Multiple Choice seller of the option receives the strike...
When a put option is exercised, the: Multiple Choice seller of the option receives the strike price. seller of the option receives the option premium. 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. seller of the option must buy the underlying asset and pay the strike price.
The price that the writer (seller) of a call option receives for the underlying asset when...
The price that the writer (seller) of a call option receives for the underlying asset when the option buyer exercises her option is called the Group of answer choices option premium option price strike price spot price
27. The writer (seller) of a put option a. agrees to sell shares at a set...
27. The writer (seller) of a put option a. agrees to sell shares at a set price if the option holder desires b. agrees to buy shares at a set price if the option holder desires c. has the right to buy shares at a set price d. has the right to spl shares at a set price 17. A call option is said to be "in-the-money" if a. the stock price (i.e. the underlying asset) is greater than the...
Suppose that you have taken a long position on a put option. The strike price is...
Suppose that you have taken a long position on a put option. The strike price is $125, and the option premium / price is $10. When the option expires, the value of the underlying asset is $90. What is your pay-off and profit / loss?
Suppose that you have taken a long position on a put option. The strike price is...
Suppose that you have taken a long position on a put option. The strike price is $125, and the option premium / price is $10. When the option expires, the value of the underlying asset is $90. What is your pay-off and profit / loss? please show your work
1. You are the buyer of a put option which has a put premium of $2.30. The strike price is $83 and the underlying stock...
1. You are the buyer of a put option which has a put premium of $2.30. The strike price is $83 and the underlying stock price is $82.50. What is your profit or loss? a. Loss $230 b. Gain $50 c. Gain $230 d. Loss $180 e. None of the above. 2. You are the seller of a put option. The put premium is $5.50 and the exercise price is $105. If the underlying stock price is $110, what is...
Question 59808 What is a put option's strike price? A The amount the holder pays the...
Question 59808 What is a put option's strike price? A The amount the holder pays the writer when the contract is opened B. The price at which the writer must sell the asset to the holder if the option is exercised The price at which the writer must purchase the asset from the holder if the option is exercised C. D. The asset price at which the writer and holder both break even
A put option with a strike price of $10 is trading at a price of $3....
A put option with a strike price of $10 is trading at a price of $3. The price of the underlying asset is $9.5. What is the time value of this option?
13. The premium on a pound put option is $.03 per unit. The exercise price is...
13. The premium on a pound put option is $.03 per unit. The exercise price is s1.60. The break-even point for the buyer and seller is? (Assume put option are speculators.) zero transactions costs and that the buyer and seller of the 14. You purchase a call option on pounds for a premium of $.03 per unit, with an exercise price of $1.64; the option will not be exercised until the expiration date, if at all. If the spot rate...
1)Would a call option be exercised at expiry if S < X where S is the...
1)Would a call option be exercised at expiry if S < X where S is the spot price of the underlying asset and X is the strike price of the option? 2) Would a put option be exercised at expiry if S > X
27. The writer (seller) of a put option a. agrees to sell shares at a set price if the option holder desires b. agrees to buy shares at a set price if the option holder desires c. has the right to buy shares at a set price d. has the right to spl shares at a set price 17. A call option is said to be "in-the-money" if a. the stock price (i.e. the underlying asset) is greater than the...
Question 59808 What is a put option's strike price? A The amount the holder pays the writer when the contract is opened B. The price at which the writer must sell the asset to the holder if the option is exercised The price at which the writer must purchase the asset from the holder if the option is exercised C. D. The asset price at which the writer and holder both break even
13. The premium on a pound put option is $.03 per unit. The exercise price is s1.60. The break-even point for the buyer and seller is? (Assume put option are speculators.) zero transactions costs and that the buyer and seller of the 14. You purchase a call option on pounds for a premium of $.03 per unit, with an exercise price of $1.64; the option will not be exercised until the expiration date, if at all. If the spot rate...
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