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Basic Question 0 of 13
The ______ of a ______ option has the obligation to buy 100 shares of common stock at a specified price for a given period of time.
B. owner; call
C. writer; call
D. writer; put
A. owner; put
B. owner; call
C. writer; call
D. writer; put
User Contributed Comments 2
| User | Comment |
|---|---|
| viannie | put option = the right to sell if you sell the put option so if you issue the put option, it's the opposite, you're obligated to buy |
| group | A very good question- viannie you have clarified my confusion: put option is a right to sell and the writer of the put option has the obligation to buy |
I used your notes and passed ... highly recommended!
Lauren
Learning Outcome Statements
describe the financial reporting treatment and analysis of non-recurring items (including discontinued operations, unusual or infrequent items) and changes in accounting policies
CFA® 2025 Level I Curriculum, Volume 2, Module 2.