Which one of the following provides the option of selling a share anytime during the option period at a speciﬁed price even if the market price of the share declines to zero?

Question

Quizplus · Accepted Answer

The option that provides the option to sell a share anytime during the option period at a specified price even if the market price of the share declines to zero is an American put. This option allows the owner to exercise the option and sell the shares at the specified price, regardless of the market price at the time of exercise. European options, on the other hand, can only be exercised on the expiration date. Therefore, an American put is the best choice.

Which One of the Following Provides the Option of Selling