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6 February, 23:25

If an options contract is exercised, which of the following statements is TRUE?

A. The buyer of a call must deliver the underlying stock

B. The buyer of a put will receive the underlying stock

C. The seller of a put will be required to buy stock

D. The seller of a call will lose the premium

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Answers (2)
  1. 7 February, 02:58
    0
    I think c because that is what I got
  2. 7 February, 03:05
    0
    The seller of a put will be required to buy stock (C)

    Explanation:

    An Options contract is a contract between parties usually a buyer and a seller it limits the power of a promisor from revoking an offer made to the buyer. the purchaser of an option can sell or buy an asset at a later date at a specific price the options contract is mostly employed in the purchase of securities real estate transactions and purchase of commodities.

    The seller of a put is required to buy a stock because put and stock are inversely related because as the stock price declines below the put strike price the put value will appreciate.
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Home » Business » If an options contract is exercised, which of the following statements is TRUE? A. The buyer of a call must deliver the underlying stock B. The buyer of a put will receive the underlying stock C. The seller of a put will be required to buy stock D.
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