Question

A put option gives the holder the right to buy something the right to sell something...

  1. A put option gives the holder

    the right to buy something

    the right to sell something

    the obligation to buy something

    the obligation to sell something

    none of the above

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Answer #1

A buyer of a put option gives the right but not the obligation to sell something.

A buyer of a call option gives the right but not the obligation to buy something.

A seller of a put option has the obligation to buy something.

A seller of a call option has the obligation to sell something.

Using the above facts the correct answer is option of A put option gives the holder the right to sell something.

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