The owner of a European put option has the:
A)right,but not the obligation,to sell the underlying asset at the specified price only on the specified date.
B)right,but not the obligation,to sell the underlying asset at the specified price during a specified period of time.
C)obligation to sell the underlying asset on the specified date,but only if they can do so at the specified price.
D)obligation to buy the underlying asset sometime during the specified period at the specified price.
E)right,but not the obligation,to buy the underlying asset at the exercise price on the expiration date.

Question

Quizplus · Accepted Answer

The owner of a European put option has the right, but not the obligation, to sell the underlying asset at the specified price only on the specified date. A put option gives the holder the right to sell a certain amount of an underlying asset at a specific price on or before a certain date. A European put option is exercisable only on the expiration date. Therefore, the owner of a European put option has the right, but not the obligation, to sell the underlying asset at the specified price only on the specified date.

The Owner of a European Put Option Has The