If a trader buys a put option, he(she) will make a profit if the price of the underlying
Asset:
A) increases
B) decreases
C) increases and then decreases
D) decreases and then increases

Question

Quizplus · Accepted Answer

A put option gives the holder the right to sell an asset at a specified price. If the price of the underlying asset decreases, the value of the put option increases, allowing the trader to sell the asset at a higher price than the current market price, thus making a profit.

If a Trader Buys a Put Option, He(she) Will Make