A(n)________ gives the holder the right to sell a stated number of shares at a specified price for a limited time.

Question

Quizplus · Accepted Answer

A put option, by definition, gives the holder the right but not the obligation, to sell a specified number of shares at a specified price (known as the exercise price or strike price) within a specified period of time (known as the expiration date or maturity date). If the share price falls below the strike price, the put option can be exercised to sell the shares at the higher strike price, thereby generating a profit for the holder.

A(n)________ Gives the Holder the Right to Sell a Stated