Why should I choose AnalystNotes?

Simply put: AnalystNotes offers the best value and the best product available to help you pass your exams.

Basic Question 18 of 18

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

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.

User Contributed Comments 0

You need to log in first to add your comment.
I passed! I did not get a chance to tell you before the exam - but your site was excellent. I will definitely take it next year for Level II.
Tamara Schultz

Tamara Schultz

Learning Outcome Statements

determine the value at expiration and profit from a long or a short position in a call or put option

contrast forward commitments with contingent claims

CFA® 2024 Level I Curriculum, Volume 5, Module 2.