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Basic Question 1 of 11
The ______ of a ______ option has the obligation to buy 100 shares of common stock at a specified price for a given period of time.
B. owner; call
C. writer; call
D. writer; put
A. owner; put
B. owner; call
C. writer; call
D. writer; put
User Contributed Comments 2
| User | Comment |
|---|---|
| viannie | put option = the right to sell if you sell the put option so if you issue the put option, it's the opposite, you're obligated to buy |
| group | A very good question- viannie you have clarified my confusion: put option is a right to sell and the writer of the put option has the obligation to buy |
You have a wonderful website and definitely should take some credit for your members' outstanding grades.
Colin Sampaleanu
Learning Outcome Statements
explain the exercise value, moneyness, and time value of an option
CFA® 2024 Level I Curriculum, Volume 5, Module 8.