An American 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 or before the expiration date and potentially benefit from a stock price increase.
E) buy the underlying asset at the striking price on or before the expiration date and potentially benefit from a stock price increase.

Question

Quizplus · Accepted Answer

An American put option gives the holder the right to sell the underlying asset at the strike price at any time up to and including the expiration date, which is accurately described in option B.

An American Put Option Allows the Holder to