Q626
Type of option that gives right to buyer to sell underlying option at specific exercise price is considered as
A.
call option
B.
put option
AnswerC.
European option
D.
Australian option
Answer: Option B
Solution
Answer: Option B
Solution:
Type of option that gives right to buyer to sell underlying option at specific exercise price is considered as put option. A put option is a contract giving the owner the right, but not the obligation, to sell a specified amount of an underlying security at a pre-determined price within a specified time frame.