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muminat
1 year ago
10

The buyer of a put expects the price of the underlying stock to rise. a. true b. false

Business
1 answer:
hoa [83]1 year ago
6 0

The buyer of a put expects the price of the underlying stock to rise is a. true

<h3>What does buying a put mean?</h3>
  • Short selling and put options are fundamentally negative methods used to speculate on the underlying securities or index's possible decline.
  • Short selling and buying put options are both bearish techniques that increase in profitability when the market falls.
  • Short selling is selling a security that the seller does not own but borrows and then sells in the market, with the possibility for substantial losses if the market rises.
  • Purchasing a put option grants the buyer the right to sell the underlying asset at the price specified in the option, with the maximum loss being the option premium paid.

learn more about buying a put refer:

brainly.com/question/17164648

#SPJ4

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Net profit is more important.

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