SIE practice questionmediumOptions - Put Option
What right does the holder of a put option have?
- ATo buy the underlying security at the strike price
- BTo sell the underlying security at the strike price✓ Correct answer
- CTo receive dividends from the underlying company
- DTo demand early repayment of a bond
Explanation
Why B — To sell the underlying security at the strike price
A put grants the right to sell at the strike, not buy, receive dividends, or call bonds.
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