A European put option allows the holder to
A. buy the underlying asset at the striking price on or before the expiration date.
B. sell the underlying asset at the striking price on or before the expiration date.
C. potentially benefit from a stock price increase.
D. sell the underlying asset at the striking price on the expiration date.
E. potentially benefit from a stock price increase and sell the underlying asset at the striking price on the expiration date.
D. sell the underlying asset at the striking price on the expiration date.
A European put option allows the buyer to sell the underlying asset at the striking price only on the expiration date. The put option also allows the investor to benefit from an expected stock price decrease while risking only the amount invested in the contract.
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