Question

The writer of a put option _______________. agrees to sell shares at a set price if the option holder desires agrees to buy shares at a set price if the option holder desires has the right to buy shares at a set price has the right to sell shares at a set price

Answer 1

agrees to buy shares at a set price if the option holder desires.

Step-by-step explanation:

In the stock market a put option is the right of a buyer to buy an options contract on an underlying asset at a set price before or on a particular date.

A person will buy a put option if they forecast that the price of an underlying asset will go down. A put owner will only make profit when he sells below the purchase price.

The call option is when a person agree to sell options at a set price where the holder is willing to buy.