A ____________ is a derivative security that gives the owner the right, but not the obligation, to sell an asset at a fixed price for a specified period of time.
A) Futures contract.
B) Call option.
C) Put option.
D) Swap.
E) Forward contract

Question

Quizplus · Accepted Answer

A put option is a financial contract that gives the holder the right to sell an asset at a predetermined price within a specified time frame, without the obligation to do so. This contrasts with a call option, which provides the right to buy, and futures or forwards, which typically involve an obligation to buy or sell. Swaps involve exchanging cash flows or other financial instruments but do not grant the right to sell an asset at a fixed price.

A ____________ Is a Derivative Security That Gives the Owner