When a put option is exercised, the:

Question 5 options:

A)

writer of the option is obligated to buy the underlying stock and pay the strike price.

B)

holder of the option pays the option premium and receives the underlying stock.

C)

seller of the option receives the strike price.

D)

writer of the option receives the option premium.

E)

holder of the option sells the underlying asset and receives the option premium.