Which of the following gives the owner the right, but not the obligation to sell an underlying asset at a fixed price for a specified time?
A) Futures
B) Forward
C) Warrant
D) Put Option
E) Call Option

Question

Quizplus · Accepted Answer

A put option grants the holder the right, but not the obligation, to sell an underlying asset at a predetermined price within a specified time frame. This contrasts with futures and forwards, which are obligations to buy or sell, and call options, which provide the right to buy. Warrants are similar to options but typically issued by the company itself.

Which of the Following Gives the Owner the Right, but Not