Assertion: put's buyer | /r/CapableOf | decide to exercise his or her right
Facets:
Source sentences:
text: If the market price falls below the strike price, as expected, the buyer can decide to exercise his or her right to sell at that price and the writer of the option contract has the obligation to buy the security at the strike price.
text: Likewise, the seller of a call option is obligated to sell stock at a certain price by a certain date if the buyer chooses to exercise his right.
text: The put buyer may also choose to exercise the right to sell at the strike price.
text: If that buyer decides to exercise his right to buy the stock at $50/share then the person who sold him the call option is obligated to sell 100 shares of ABC stock to him at $50/share.
text: More importantly, the writer takes on an obligation to the counterparty when selling an option because it carries a commitment to honor the position if the buyer of the option decides to exercise their right to own the security outright.
text: If the market price falls below the strike price, as expected, the buyer can decide to exercise his or her right to sell at that price and the writer of the option contract has the obligation to buy the security at the strike price.