The price that the buyer of a put option receives for the underlying asset if she executes her option is called the
A) strike price.
B) exercise price.
C) execution price.
D) strike price or execution price.
E) strike price or exercise price.

Question

Quizplus · Accepted Answer

The price that the buyer of a put option receives for the underlying asset if she executes her option is called the strike price or exercise price. Both terms are commonly used in the options market to refer to the fixed price at which the option holder can sell the underlying asset.

The Price That the Buyer of a Put Option Receives