Ownership of a put option entitles the owner to the to _ a specific stock, on or before a specific date, at

Question

quester [9]

3 years ago

15

Ownership of a put option entitles the owner to the to _ a specific stock, on or before a specific date, at

a specific price. A. right, buyB.right, sellC. obligation, buyD. obligation, sell

Business

1 answer:

kipiarov [429] · Answer 1 · 2022-02-09T18:26:25+03:00

Answer:

B.right, sell

Explanation:

Put option is a contract giving owner the right not obligation to sell the underlying asset or stocks at predetermined price (strike price) before the specified time. Put option protect the owner from loss if the price of underlying asset goes below the strike price in the specified period of time. It also help the owner to sell the stock obove the market price as specified earlier to earn some profit for owner. There is another option available in contrast to put option is called Call option, which gives right to buy underlying asset at specified price and time. These option help the owner to avoid loss and earn profit.

Ownership of a put option entitles the owner to the __________ to ___________ a specific stock, on or before a specific date, at

Ownership of a put option entitles the owner to the to _ a specific stock, on or before a specific date, at