Question
I sold a put option on an IBM stock. The option expires in 6 months and has a strike price of $125. The option premium
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I sold a put option on an IBM stock. The option expires in 6 months and has a strike price of $125. The option premium is $5. Which of the following statements is true?
I paid $5 for this option.
If the buyer of this option decides to exercise this option, I will have to buy an IBM share from him at a price of $125.
If the buyer of this option decides to exercise this option, I will have to sell an IBM share to him at a price of $125.
I have the right to sell an IBM stock at the price of $125.
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Surviving In General Management
Authors: Philip Berman, Pauline Fielding
1st Edition
9780333483145
