Buyers of put options expect the value of the underlying asset to _______,and the sellers of call options expect the value of the underlying asset to ________.

Question

Quizplus · Accepted Answer

Buyers of put options expect the value of the underlying asset to decrease so they can sell it at a higher strike price, while sellers of call options expect the value to decrease to avoid having to sell the asset at a lower price than the market value.

Buyers of Put Options Expect the Value of the Underlying