A contract that grants its buyer the right, but not the obligation, to sell an asset at a specified price is called a:
A)futures contract.
B)call option.
C)preset contract.
D)put option.
E)primary contract.

Question

Quizplus · Accepted Answer

A put option grants its buyer the right, but not the obligation, to sell an asset at a specified price, whereas a call option grants its buyer the right, but not the obligation, to buy an asset at a specified price. A futures contract is an agreement to buy or sell an asset at a future date for a predetermined price, and a preset contract and primary contract are not commonly used financial terms.

A Contract That Grants Its Buyer the Right, but Not