Q629
An option that gives investors right to sell a stock at predefined price is classified as
A.
put option
AnswerB.
call option
C.
money back options
D.
out of money options
Answer: Option A
Solution
Answer: Option A
Solution:
An option that gives investors right to sell a stock at predefined price is classified as put option. A put option is an option contract giving the owner the right, but not the obligation, to sell a specified amount of an underlying security at a specified price within a specified time frame.