An option that gives the owner the right to sell a financial instrument at the exercise price within a specified period of time is a
A)call option.
B)put option.
C)American option.
D)European option.

Question

Quizplus · Accepted Answer

A put option is the right to sell a financial instrument at the exercise price within a specified period of time. A call option, on the other hand, gives the owner the right to buy a financial instrument at the exercise price within a specified period of time. American and European options refer to when the option can be exercised. American options can be exercised at any time before the expiration date, while European options can only be exercised on the expiration date.

An Option That Gives the Owner the Right to Sell