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)buyer of the put option is committed to handing over the specified bond at a specified time to the seller of the option
C)buyer of the option is committed to receive the underlying bond at a specified time
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 bond from the buyer if the buyer chooses to exercise the option.

In a Put Option on a Bond, The