What is a "put" option?
A)A contract that gives the holder the right to sell an instrument at a pre-specified price.
B)A contract that is derived from some other underlying quantity,index,asset or event.
C)A contract that gives the holder the right to acquire an instrument at a pre-specified price.
D)A contract that gives the holder the right to buy or sell something at a specified price.

Question

Quizplus · Accepted Answer

A "put" option is a contract that gives the holder the right to sell an instrument, such as a stock or bond, at a pre-specified price. This is different from a "call" option, which gives the holder the right to buy an instrument at a pre-specified price.

What Is a "Put" Option