A Put Option Can Best Be Defined As

question 180

Multiple Choice

A put option can best be defined as:

• A) An option that gives the owner the right, but not the obligation, to buy an asset.
• B) An option that gives the owner the right, but not the obligation, to sell an asset.
• C) Risk that futures prices will not move directly with cash price hedged.
• D) An agreement by two parties to exchange, or swap, specified cash flows at specified intervals in the future.
• E) An agreement that gives the owner the right, but not the obligation, to buy or sell a specific asset at a specific price for a set period of time.

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Definitions:

Respond

To give an answer or reaction to a stimulus or situation.

Acquiescence Response Set

A tendency for respondents to agree with statements as presented to them, regardless of the content.

Problem

A situation, question, or issue that presents difficulty, uncertainty, or challenge and requires a solution or resolution.

Combat

Refers to fighting or warfare between individuals or groups, often used to resolve conflict or assert dominance.