Multiple Choice
The writer of a put option hopes that the price of the underlying stock will rise because
A) the option is more likely to be exercised.
B) the option is less likely to be exercised.
C) the buyer of the put will have to purchase the stock at a higher price.
D) the value of the put option will increase in the secondary market.
Correct Answer:

Verified
Correct Answer:
Verified
Q76: A vertical spread with limited risk might
Q77: Bill owns 200 shares of EG stock.
Q78: While stock index options can be used
Q79: It is riskier to buy an option
Q80: A long straddle<br>A) consists of selling and
Q82: Jason purchased a six-month put on ABC
Q83: The buyer of a put and the
Q84: If the Canadian dollar became stronger relative
Q85: An American call option gives the owner<br>A)
Q86: Andrea wrote a three-month call on Echo