Question
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.
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.
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The option a is right option Explanation The seller of any option either call or put ha...
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Brock Biology of Microorganisms
Authors: Michael Madigan, John Martinko, Kelly Bender, Daniel Buckley
14th edition
978-0-321-8970, 321897390, 0-321-89707-2, 978-0321897398
