A derivative that gives the holder the right, but not the obligation to sell the underlying security iscalled a ___________

Question

Quizplus · Accepted Answer

A put option gives the holder the right, but not the obligation, to sell an underlying security at a predetermined price (strike price) within a specified time period. This allows the holder to potentially profit from a decrease in the price of the underlying security. A "right" is not a type of derivative, a "call" gives the holder the right to buy the underlying security, and a "warrant" is a type of long-term option issued by a company.

A Derivative That Gives the Holder the Right, but Not