Asked by Angelica Golebiewski on May 09, 2024
Verified
Buying a put option gives you the right to sell shares.
Put Option
A financial contract that gives the holder the right, but not the obligation, to sell a specified amount of an underlying asset at a set price within a specified time.
Sell Shares
The act of offloading equity stakes in a company, usually in the form of stock, to raise capital or realize gains from investment.
- Acquire knowledge on the rights and obligations linked to the purchase and sale of call and put options.
Verified Answer
AB
Alondra BelloMay 12, 2024
Final Answer :
True
Explanation :
Buying a put option gives the holder the right, but not the obligation, to sell a specified amount of an underlying security at a specified price within a specified time frame.
Learning Objectives
- Acquire knowledge on the rights and obligations linked to the purchase and sale of call and put options.