New FLASH SALE Dhamaka - Flat 60% Off on All Courses

    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.

    Practice Next

    Relevant for Exams: