The price that the buyer of a put option pays to acquire the option is called the

A) strike price.
B) exercise price.
C) execution price.
D) acquisition price.
E) premium.

Put Option

A legally binding agreement that enables an individual to choose, though not be forced, to offload a specific volume of an underlying asset at a predetermined rate before a particular deadline.

Acquisition Price

The total cost incurred to acquire an asset, including the purchase price and associated expenses.

Premium

An amount paid in addition to a standard rate, often associated with insurance costs, options trading, or higher quality services and products.