A put option allows the holder to
A)buy the underlying asset at the strike price on or before the expiration date.
B)sell the underlying asset at the strike price on or before the expiration date.
C)sell the option in the open market prior to expiration.
D)B and C.
E)A and C.

Question

Quizplus · Accepted Answer

A put option gives the holder the right, but not the obligation, to sell the underlying asset at the strike price on or before the expiration date. The holder can also sell the option in the open market prior to expiration.

A Put Option Allows the Holder to