A ________ Gives Its Holder the Right to Sell an Asset

question 74

Multiple Choice

A ________ gives its holder the right to sell an asset for a specified exercise price on or before a specified expiration date.

• A) call option
• B) futures contract
• C) put option
• D) interest rate swap

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Definitions:

SEC

U.S. Securities and Exchange Commission; a federal agency responsible for enforcing federal securities laws and regulating the securities industry, stock and options exchanges.

Securities Laws

Regulations and laws that govern the sale, purchase, and issuance of securities, aimed at protecting investors and ensuring fair and efficient markets.

1933 Act

The Securities Act of 1933, a U.S. law aimed at ensuring more transparency in financial statements so investors can make informed decisions about securities investments.

Regulatory Components

Elements or aspects of laws, regulations, or guidelines that impact how businesses and individuals must conduct themselves.