A Put Option Gives the Owner the Right

question 45

Multiple Choice

A put option gives the owner the right

• A)and the obligation to buy an asset at a given price.
• B)and the obligation to sell an asset at a given price.
• C)but not the obligation to buy an asset at a given price.
• D)but not the obligation to sell an asset at a given price.

---

Definitions:

Coupon Bond

A type of bond that pays the holder a fixed interest payment (coupon) at regular intervals until the maturity date, at which point the principal is repaid.

Maturity

The date on which a debt must be paid back in full or the final payment is due.

Price Sensitivity

The degree to which the price of a product or service affects consumers' purchasing decisions.

Interest Rates

The cost of borrowing money or the return earned from lending money, expressed as a percentage of the principal.