Which of the following statements regarding put options is not true?
A) You buy a put option when you expect the stock's price to increase.
B) You place an order for a put option in the same way you place an order for a call option.
C) Put options have an expiration date.
D) Put options allow an investor to lock in a minimum price.

Question

Quizplus · Accepted Answer

You buy a put option when you expect the stock's price to decrease, not increase. A put option gives the holder the right to sell a stock at a specified price before the option expires.

Which of the Following Statements Regarding Put Options Is Not