As the writer of an American-style put option with physical settlement, you are
obliged to accept the underlying assets at the strike price if the buyer exercises the
option, even though it may be difficult or impossible to sell the assets and may well
entail substantial losses.
When you buy a contingent option you must pay the premium only if the market
value of the underlying reaches or exceeds the strike price during the life of the
option (American-style option) or on the expiration date (European-style option).