Question

Question 59808 What is a put option's strike price? A The amount the holder pays the writer when the contract is opened B. The price at which the writer must sell the asset to the holder if the option is exercised The price at which the writer must purchase the asset from the holder if the option is exercised C. D. The asset price at which the writer and holder both break even

Answer 1

C. Option c is the answer.

Explanation:-

Put Option:  A put is an options contract that gives the buyer the right to sell the underlying asset at the strike price at any time up to the expiration date

Strike Price: The price at which the holder of an options can buy (in the case of a call option) or sell (in the case of a put option) the underlying security when the option is exercised. Hence, the strike price is also known as exercise price.

For example, a stock put option with a strike price of 10 means the put option buyer can use the option to sell that stock at $10 before the option expires