The payoff for issuing an option is known as a put.

Question

Quizplus · Accepted Answer

The payoff for issuing an option is not specifically known as a put. A put is a type of option that gives the holder the right, but not the obligation, to sell a security at a specified price before the option expires. The term "payoff" refers to the profit or loss that will be realized by the holder or issuer of the option when it is exercised or expires, and can apply to both put and call options.

The Payoff for Issuing an Option Is Known as a Put