The writer of a put
A) accepts the obligation to sell a predetermined number of shares at a predetermined price.
B) is betting the price of the underlying security will increase in value.
C) is hoping that the put will be in-the-money prior to expiration.
D) will pay the premium whether or not the option is exercised.

Question

Quizplus · Accepted Answer

The writer of a put option is betting that the price of the underlying security will increase, so the option will expire worthless, and they can keep the premium received.

The Writer of a Put