A Put Option Gives the Owner the Right to ________

question 97

Multiple Choice

A put option gives the owner the right to ________ an asset at a fixed price at some future date.

• A) sell
• B) buy
• C) hold
• D) none of the above

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Definitions:

Quantity Supplied

The quantity of a product or service suppliers are prepared to offer for sale at a specific price.

Price Ceiling

A government-imposed limit on how high a price can be charged on a product, aiming to keep essential goods affordable.

Quantity Demanded

The total amount of a good or service that consumers are willing to purchase at a given price over a specified period.

Quantity Supplied

The amount of a good that producers are willing and able to sell at a given price over a specified period.