Question

Buyers of put options anticipate the value of the underlying asset will __________, and sellers of call options anticipate the value of the underlying asset will ________. Group of answer choices Cannot tell without further information increase; decrease decrease; increase decrease; decrease increase; increase

Answer 1

Decrease;decrease.

Step-by-step explanation:

In Business, an option is a legal contract which gives a buyer the right but not an obligation, to sell (such as put) or buy (such as a call) the underlying asset at a specific or given price on or before a certain date.

Generally, buyers of put options anticipate the value of the underlying asset will decrease, and sellers of call options anticipate the value of the underlying asset will decrease.