An options investor purchases one stock put option on General Motor’s stock. The put has the following characteristics : Type of option: put option Underlying asset: 100 shares of General Motor’s stock Exercise price : $75 per share Premium: $1.81 per share Expiration date : November By taking a LONG position in this put option, the investor has:()
A. purchased the right to decide whether to sell 100 shares of General Motor’s stock and receive $181 during the specified time period (the expiration date in November)
B. purchased the right to decide whether to purchase 100 shares Of General Motor’s stock and receive $181 during the specified time period (the expiration date in November)
C. none of the above