An option that gives the option buyer the right to sell the commodity or financial instrument specified in the contact at the exercise price is called:
A) an American option.
B) a European option.
C) a call option.
D) a put option.

Question

Quizplus · Accepted Answer

A put option gives the option buyer the right to sell the commodity or financial instrument specified in the contract at the exercise price. An American or European option refers to the timing of exercise, while a call option gives the option buyer the right to buy the underlying asset at the exercise price.

An Option That Gives the Option Buyer the Right to Sell