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Basic Question 1 of 11
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 am using your study notes and I know of at least 5 other friends of mine who used it and passed the exam last Dec. Keep up your great work!
Barnes
Learning Outcome Statements
explain the exercise value, moneyness, and time value of an option
CFA® 2025 Level I Curriculum, Volume 5, Module 8.