A ____ is a financial instrument which gives the owner the right but not the obligation to sell shares of stock at a specified price during a particular time period.
A) convertible security
B) call option
C) warrant
D) put option
E) callable security

Question

Quizplus · Accepted Answer

A put option is a type of financial instrument that gives the owner the right, but not the obligation, to sell shares of stock at a specified price during a particular time period. This is different from a call option, which gives the owner the right to buy shares of stock at a specified price. Convertible securities, warrants, and callable securities are all different types of financial instruments, but they do not relate to the specific definition in the question.

A ____ Is a Financial Instrument Which Gives the Owner