A customer who sells a put option is exposed to which primary risk?

1. AStock remains unchanged, incurring a loss
2. BStock rises above strike price, requiring sale at a loss
3. CStock declines below strike price, requiring purchase of declining asset✓ Correct answer
4. DOption premium increases, causing margin call

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• Which of the following is true for a call option at the money?
• A 75 strike put with the stock at $80 is:
• A put option is described as 'in the money' when:
• A customer who sells (writes) a call option is said to have a: