A put option gives the owner the right
A)and the obligation to buy an asset at a given price.
B)and the obligation to sell an asset at a given price.
C)but not the obligation to buy an asset at a given price.
D)but not the obligation to sell an asset at a given price.

Question

Quizplus · Accepted Answer

A put option gives the owner the right, but not the obligation, to sell an asset at a given price. Option A and B describe the characteristics of a call option. Option C is incorrect as it states that the owner has the obligation to buy, which is not true for a put option.

A Put Option Gives the Owner the Right