- CFA Exams
- CFA Exam: Level I 2021
- Study Session 16. Derivatives
- Reading 49. Basics of Derivative Pricing and Valuation
- Subject 7. The Value of a European Option at Expiration
CFA Practice Question
A put gives the owner the right ______.
B. but not the obligation to buy an asset at a given price
C. but not the obligation to sell an asset at a given price
A. and the obligation to sell an asset at a given price
B. but not the obligation to buy an asset at a given price
C. but not the obligation to sell an asset at a given price
Correct Answer: C
User Contributed Comments 1
| User | Comment |
|---|---|
| ankurwa10 | option ~ choice, so never an obligation (see it from the holder's perspective, of course from the writer (seller's perspective there is an obligation) |