What Is a "Put" Option

question 81

Multiple Choice

What is a "put" option?

• A)A contract that gives the holder the right to sell an instrument at a pre-specified price.
• B)A contract that is derived from some other underlying quantity,index,asset or event.
• C)A contract that gives the holder the right to acquire an instrument at a pre-specified price.
• D)A contract that gives the holder the right to buy or sell something at a specified price.

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Definitions:

Leisure

Free time available to individuals when they are not engaged in work or essential activities, often used for relaxation or recreation.

Labor Supply Curve

A graphical representation that shows the relationship between the quantity of labor willing to be provided and the wage rate.

Nonlabor Income

Income received from sources other than direct employment or work, such as investments, pensions, or transfer payments.

Substitution Effect

The change in the quantity demanded of a good as consumers switch away from more expensive alternatives.