Which of the following investors may be obligated to buy stock?
A)covered call writer
B)call buyer
C)put writer
D)protective put buyer
E)none of the above

Question

Quizplus · Accepted Answer

A put writer (seller) may be obligated to buy the underlying stock if the put option is exercised by the buyer. This happens when the stock's market price falls below the strike price of the put option, giving the put option holder the right to sell the stock at the strike price to the put writer.

Which of the Following Investors May Be Obligated to Buy