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      Question

      A Put Option

      is:
      A The right to sell at a specific price Correct Answer Incorrect Answer
      B The right to buy at a specific price Correct Answer Incorrect Answer
      C An obligation to buy at a certain price Correct Answer Incorrect Answer
      D A forward commitment to buy at a specific price Correct Answer Incorrect Answer
      E None of the above Correct Answer Incorrect Answer

      Solution

      A Put option is a right but not an obligation to sell an underlying asset at a specific price.

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