An Option That Grants the Right,but Not the Obligation,to Sell

question 14

Multiple Choice

An option that grants the right,but not the obligation,to sell shares of the underlying asset on a particular date at a specified price is called:

• A) either an American or a European option.
• B) an American call.
• C) an American put.
• D) a European put.
• E) a European call.

---

Definitions:

Know Anything

The capability or act of understanding, learning, or being aware of information without limitations.

Logically Presented

When information or arguments are arranged and expressed in a clear, orderly, and rational manner.