In a put options contract, the
A)seller has the obligation to receive the instrument at a specified time.
B)buyer has the obligation to deliver the instrument at a specified time.
C)buyer has the obligation to receive the instrument at a specified time.
D)seller has the obligation to deliver the instrument at a specified time.

Question

Quizplus · Accepted Answer

In a put options contract, the seller (also known as the writer) has the obligation to buy the underlying asset from the put option holder at the strike price if the option is exercised. This means the seller must be ready to receive the instrument at a specified time if the buyer decides to exercise the option.

In a Put Options Contract, the