Erin wrote a put option on Verizon stock with a striking price of $53 price per share.At the expiration date,Verizon was selling for $50 per share.Which statement best describes the course of action that Erin should or must take?

Question

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When Erin wrote a put option on Verizon stock with a striking price of $53, she agreed to buy the stock at $53 regardless of the market price at the expiration date. As the market price is lower than the striking price, Erin is obliged to buy the Verizon shares at $53 per share, even though the market price is $3.00 lower. Therefore, she should exercise her option and buy the shares at $53.

Erin Wrote a Put Option on Verizon Stock with a Striking