Cash equal to the strike price multiplied by 100 shares
Answer: Option C.
Explanation:
A covered put choice is an alternative to sell where the essayist (short) has adequate money on store, has long identical put, or has a bank ensure letter to "spread" the put whenever practiced by the holder.
A put choice gives the holder the privilege however not the commitment to sell the offers at a predefined cost during the life of the choice. Recorded as a hard copy or shorting a put choice, the merchant (essayist) of the put choice gives the privilege to the purchaser (holder) to sell a benefit by a specific date at a specific cost.
