A European put option allows the holder to
A)buy the underlying asset at the striking price on or before the expiration date.
B)sell the underlying asset at the striking price on or before the expiration date.
C)potentially benefit from a stock price increase.
D)sell the underlying asset at the striking price on the expiration date.

Question

Quizplus · Accepted Answer

A European put option gives the holder the right to sell the underlying asset at the strike price only on the expiration date, not before.

A European Put Option Allows the Holder to