A Put Option Gives the Owner the

question 34

Multiple Choice

A put option gives the owner the

• A)right to sell the underlying security.
• B)obligation to sell the underlying security.
• C)right to buy the underlying security.
• D)obligation to buy the underlying security.

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Definitions:

Price

The expenditure required to procure a good, service, or asset.

Income

The amount of money received by an individual or entity over a specified period, usually through employment, business, or investments.

Demand Curve

A graph representing the relationship between the price of a good and the quantity demanded by consumers.

Income

Financial gains accrued from work or investments over time.