The buyer of a put option has a(n)_____ to sell the underlying asset and the option seller has a(n)____ to buy the underlying asset.
A) obligation; obligation
B) obligation; right
C) right; right
D) right; obligation

Question

Quizplus · Accepted Answer

The buyer of a put option has the right to sell the underlying asset at a specified strike price, but not the obligation to do so. On the other hand, the option seller has the obligation to buy the underlying asset if the buyer exercises their right to sell. Therefore, the correct choice is D, where the buyer has the right and the seller has the obligation.

The Buyer of a Put Option Has A(n)_____ to Sell