In a put option on a bond, the:
A) seller of the put option is committed to receive the underlying bond at a specified time.
B) B: buyer of the put option is committed to handing over the specified bond at a specified time to the seller of the option.
C) C: buyer of the option is committed to receive the underlying bond at a specified time.
D) D: seller of the bond is committed to handing over the specified bond at a specified time.

Question

Quizplus · Accepted Answer

The seller of a put option is obligated to buy the underlying asset (in this case, a bond) if the buyer of the put option decides to exercise the option.

In a Put Option on a Bond, The