Re: newbie question about options
Yes, the holder of a put option has the right to sell at the exercise price K.
You can have 'american style' options which allow you to exercise at any time up to the expiry time, and 'european style' that allow you to exercise only AT the expiry time.
An american call is worth the same as a european call provided there are no dividends to be paid.
This is not the case for a put option for all interest rates >0.
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