The writer of a put option ________.
A) agrees to sell shares at a set price if the option holder desires
B) agrees to buy shares at a set price if the option holder desires
C) has the right to buy shares at a set price
D) has the right to sell shares at a set price

Question

Quizplus · Accepted Answer

The writer (seller) of a put option is obligated to buy the underlying shares from the option holder at the strike price if the option holder decides to exercise the option.

The Writer of a Put Option ________