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1 vote
If an options contract is exercised, which of the following statements is TRUE?

A. The buyer of a call must deliver the underlying stock
B. The buyer of a put will receive the underlying stock
C. The seller of a put will be required to buy stock
D. The seller of a call will lose the premium

2 Answers

4 votes
I think c because that is what I got
User Xphong
by
8.7k points
6 votes

Answer:

The seller of a put will be required to buy stock ( C )

Step-by-step explanation:

An Options contract is a contract between parties usually a buyer and a seller it limits the power of a promisor from revoking an offer made to the buyer. the purchaser of an option can sell or buy an asset at a later date at a specific price the options contract is mostly employed in the purchase of securities real estate transactions and purchase of commodities.

The seller of a put is required to buy a stock because put and stock are inversely related because as the stock price declines below the put strike price the put value will appreciate.

User Avitus
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