The holder of a put option has
A)the right to sell a security for a given price.
B)the right to buy a security for a given price.
C)the obligation to buy a security for a given price.
D)the obligation to sell a security for a given price.

Question

Quizplus · Accepted Answer

A put option gives the holder the right, but not the obligation, to sell a security at a specified price, known as the strike price. This can be advantageous if the market price of the security drops, as it allows the holder to sell at a higher price than the market value.

The Holder of a Put Option Has