A put option requires the seller to buy an asset at market price and the buyer of the put option has the option to sell the asset at market.

Question

Quizplus · Accepted Answer

A put option gives the buyer the right to sell the underlying asset at a predetermined price (strike price) on or before a specified date. The seller of the put option is obliged to buy the asset at the strike price if the buyer chooses to exercise the option. Therefore, the statement in the question is incorrect.

A Put Option Requires the Seller to Buy an Asset