option that gives the holder the right to sell a stock at a specified price at some future time is
A)a call option.
B)a put option.
C)an out-of-the-money option.
D)a naked option.
E)a covered option.

Question

option that gives the holder the right to sell a stock at a specified price at some future time is
A)a call option.
B)a put option.
C)an out-of-the-money option.
D)a naked option.
E)a covered option.

Quizplus · Accepted Answer

A put option gives the holder the right to sell a stock at a specified price (strike price) at a future time. This is useful for investors who believe that a stock's price will decrease in the future, as they can use the put option to sell the stock at a higher price than the market value.

Option That Gives the Holder the Right to Sell a Stock