An investor holding an investment portfolio who purchases a put option is expecting:

Question

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Purchasing a put option gives the investor the right, but not the obligation, to sell their stock at a specific price (known as the strike price) before the option expires. This is often used as a hedging strategy to protect against a potential decline in the stock's price. Therefore, the investor who purchases a put option is expecting share prices to fall in the short term.

An Investor Holding an Investment Portfolio Who Purchases a Put