An investor who purchases put options on a stock is bullish about its future performance

Finance Dec 22, 2020

An investor who purchases put options on a stock is bullish about its future performance.

Group of answer choices

A. True

B. False

Expert Solution

B. False

Put options gives the right to sell a stock at a pre-determined price. An ivestor will buy a put option if he/she is bearish about the market. That is, he is thinking the stock will fall in future.

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