The holder of a put option has:
A)the obligation to sell a security for a given price.
B)the right to buy a security for a given price.
C)the right to sell a security for a given price.
D)the obligation to buy a security for a given price.
E)the short position in the contract.

Question

Quizplus · Accepted Answer

The holder of a put option has the right (but not the obligation) to sell a security for a given price, which is known as the strike price. This gives the holder the ability to profit if the market price of the underlying security falls below the strike price.

The Holder of a Put Option Has