When a put option is exercised, the: Multiple Choice seller of the option receives the strike...

Question

Question

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.

Answer 1

Answer #1

Put Option: Buyer of put option has right to sell an underlying asset at agreed strike price at a particular time period.

Buyer: Pays premium and receive strike price if exercised.

Seller: Receives premium and sells stock at strike price if buyer exercise.

Answer:

Answer 2

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