An individual who speculates by selling a put option wants to:
A)Bet that the market price of the underlying asset will not fall.
B)Bet that the market price of the underlying asset will not rise.
C)Bet that the option expires worthless.
D)Buy the underlying asset in the future.

Question

Quizplus · Accepted Answer

Selling a put option is a bullish strategy where the seller expects the market price of the underlying asset to either stay the same or increase. If the price of the asset does not fall below the strike price of the put option, the seller keeps the premium collected from the buyer as profit. Thus, the seller is betting that the market price of the underlying asset will not fall.

An Individual Who Speculates by Selling a Put Option Wants