Investment VehiclesQuestion 27 of 110
An investor who buys a put option is generally expressing which market view?
a.Bullish on the underlying asset
b.Bearish on the underlying asset
c.Neutral, seeking only income
d.Expecting no change in volatility
Explanation
Buying a put gives the right to sell at the strike price, which becomes valuable if the underlying asset's price falls, reflecting a bearish outlook. Puts can also hedge a long position. A call buyer, by contrast, is typically bullish.
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