A put option in the stock exchange is an option
-
A.
to sell -
B.
not to sell -
C.
to buy -
D.
not to buy
Correct Answer: Option A
Explanation
A put or put option is a stock market device which gives the owner the right, but not the obligation, to sell an asset at a specified price by a predetermined date (the expiry or maturity) to a given party (the seller of the put).