A is a type of option that permits the owner to sell an asset at a later time.a.Forward optionb.The put optionc.A future agreementd.Call option
Question
A is a type of option that permits the owner to sell an asset at a later time.a.Forward optionb.The put optionc.A future agreementd.Call option
Solution
The correct answer is b. The put option. A put option is a type of contract that gives its owner the right, but not the obligation, to sell a certain amount of an underlying security at a specified price within a specified time. This is typically used when the owner of the option anticipates that the price of the underlying asset will decrease.
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