A put option gives the owner the
A) obligation to sell shares.
B) right to buy shares.
C) right to sell shares.
D) right to buy or sell shares.

Question

Quizplus · Accepted Answer

A put option is a contract that gives the owner the right, but not the obligation, to sell a specific amount of an underlying asset (such as a stock) at a predetermined price (strike price) within a certain period of time. Therefore, the owner of a put option has the right to sell shares.

A Put Option Gives the Owner the