Which term refers to an option that gives the holder the right to sell a stock at a specified price at some future time?
A)a call option
B)a put option
C)a naked option
D)a covered option

Question

Which term refers to an option that gives the holder the right to sell a stock at a specified price at some future time?
A)a call option
B)a put option
C)a naked option
D)a covered option

Quizplus · Accepted Answer

A put option gives the holder the right to sell a stock at a specified price at some future time. This is in contrast to a call option, which gives the holder the right to buy a stock at a specified price at some future time. A naked option is an option that is not hedged, meaning the seller does not already own the underlying asset. A covered option is an option that is hedged, meaning the seller already owns the underlying asset.

Which Term Refers to an Option That Gives the Holder