CFA Practice Question

There are 206 practice questions for this study session.

CFA Practice Question

A contract giving the owner the right to sell a specific stock at a specific price by a certain date is a ______.

A. put option
B. call option
C. future contract
D. stock index future contract
Correct Answer: A

User Contributed Comments 5

User Comment
rana1970 not right but obligation
jpducros Remember: Call = Buy ; Put = Sell
poomie83 future is a commitment to sell not a right
johntan1979 I almost got thrown off by "by a certain date". You can exercise the option at any time, but not after the expiration date.
GBolt93 Rana it's an obligation only if you exercise the option, which you have the right to do or not do.
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