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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