New Enroll in RBI Grade B New Batch - Starts on May 21

    Question

    The right but not the obligation to sell the underlying

    asset is called ________
    A Short future Correct Answer Incorrect Answer
    B Long Futures Correct Answer Incorrect Answer
    C Call Option Correct Answer Incorrect Answer
    D Put Option Correct Answer Incorrect Answer
    E Swap Correct Answer Incorrect Answer

    Solution

    An option gives the holder of the option the right, but not the obligation to buy or sell the underlying asset in future at the specified price called the strike price. Right to buy underlying asset under Options is called Call Option and right to sell is known as Put Option.

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