FINRA Series 7 quiz
Which of the following obligations is the writer of a put options contract subject to?
- (a)
The obligation to sell the underlying security at the strike price
- (b)
The obligation to buy the underlying security at the market price
- (c)
The obligation to sell the underlying security at the market price
- (d)
The obligation to buy the underlying security at the strike price
Put writers (investors with short put positions) are obligated to buy the underlying security at the strike price if assigned (exercised).
Which of the following obligations is the writer of a put options contract subject to?
The obligation to sell the underlying security at the strike price
The obligation to buy the underlying security at the market price
The obligation to sell the underlying security at the market price
The obligation to buy the underlying security at the strike price