SIE practice questioneasyPut options
Which of the following positions has the obligation to buy stock if assigned?
- AShort put✓ Correct answer
- BLong put
- CShort call
- DLong call
Explanation
Why A — Short put
A short put obligates the seller to buy the stock if the contract is exercised. Long puts give the right to sell, and calls (both long and short) involve the right/obligation to buy or sell.
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