A put option can best be defined as:
A) An option that gives the owner the right, but not the obligation, to buy an asset.
B) An option that gives the owner the right, but not the obligation, to sell an asset.
C) Risk that futures prices will not move directly with cash price hedged.
D) An agreement by two parties to exchange, or swap, specified cash flows at specified intervals in the future.
E) An agreement that gives the owner the right, but not the obligation, to buy or sell a specific asset at a specific price for a set period of time.

Question

Quizplus · Accepted Answer

A put option grants the holder the right to sell an asset at a predetermined price within a specified time frame, distinguishing it from a call option, which provides the right to buy.

A Put Option Can Best Be Defined As