A Put Option Gives the Owner the ________ to ________

question 12

Multiple Choice

A put option gives the owner the ________ to ________ the underlying security.

• A) right; sell
• B) obligation; sell
• C) right; buy
• D) obligation; buy

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Definitions:

Potential Acquirer

An entity or individual considering the purchase or takeover of another company.

Spinoff

A type of corporate restructuring in which a company divides itself into two or more independently operated businesses, one being separated from the parent organization.

Hostile Takeovers

Acquisition attempts opposed by the management or board of the target company, often through public offer to shareholders or proxy fight.

Stockholders

Individuals or entities that own one or more shares of stock in a corporation, making them partial owners of the company.