Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Suppose an investor sells (writes) a put option. What will happen if the stock price on the exercise date exceeds the exercise price? answer choices

Suppose an investor sells (writes) a put option. What will happen if the stock price on the exercise date exceeds the exercise price?

answer choices

a.The seller will need to deliver stock to the owner of the option.

b.The seller will be obliged to buy stock from the owner of the option.

c.The owner will not exercise his option.

d.The option will extend for nine more months.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

ISE Essentials Of Investments

Authors: Zvi Bodie, Alex Kane, Alan Marcus

12th International Edition

1265450099, 9781265450090

More Books

Students also viewed these Finance questions