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

    Question

    Which financial instrument provides the right, but not

    the obligation, to buy or sell an asset at a specified price?
    A Bond Correct Answer Incorrect Answer
    B Stock Correct Answer Incorrect Answer
    C Option Correct Answer Incorrect Answer
    D Futures contract Correct Answer Incorrect Answer
    E Certificate of deposit Correct Answer Incorrect Answer

    Solution

    An option provides the right, but not the obligation, to buy or sell an asset at a specified price within a certain period.

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