An option that gives investors the right to sell a stock at predefined price is classified as Options: A . &nbspput option B . &nbspcall option C . &nbspmoney back options D . &nbspout of money options

An option that gives investors the right to sell a stock at predefined price is

Question

An option that gives investors the right to sell a stock at predefined price is classified as

Options:

A . put option

B . call option

C . money back options

D . out of money options

Answer: Option A
Answer: (a).put option

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Question 1. In put call parity relationship, the present value of exercise price is added to call option which is equal to....

Question 2. The value of stock is $250 and the call option obligation is $100 then the current value of portfolio would be....

Question 3. The second step in binomial approach of option pricing is to define range of values....

Question 4. A type of contract in which the contract holder has the right to sell an asset at specific period for predetermining pri....asset at specific period for predetermining price is classified as

Question 5. The third step in binomial approach of option pricing is to....

Question 6. According to the Black Scholes model, the short term seller receives today's price which....

Question 7. An increase in value of option leads to low present value of exercise cost only if it has....

Question 8. An investor who writes stock call options in his own portfolio is classified as....

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Question 10. According to put call parity relationship, a call option minus put option in addition with present value of exercise is ....in addition with present value of exercise is equal to

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