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American Bankers Association Exam CTFA Topic 10 Question 75 Discussion

Actual exam question for American Bankers Association's CTFA exam
Question #: 75
Topic #: 10
[All CTFA Questions]

Put Option is:

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Suggested Answer: C

by Merilyn at Sep 13, 2024, 09:42 AM

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Magda
22 days ago
I'm going with C. Seems the most precise and accurate description of a put option.
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Maryann
23 days ago
Haha, 'put obligations'? I don't think that's a thing. C is the clear winner here.
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Tricia
24 days ago
I agree with C. The other options don't quite capture the essence of a put option.
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Casandra
8 days ago
D) An activity that grants the holder the right to put obligations to the underlying asset at the specified strike price.
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Diego
9 days ago
C) An instrument that grants the holder the right but not the obligations to sell the underlying asset at the specified strike price.
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Edward
13 days ago
B) A strategy that grants the holder the right to sell the underlying asset at the actual price.
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Yvonne
15 days ago
A) A procedure that grants the holder the right but not the obligations to buy the main asset at the specified market price.
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Markus
29 days ago
C definitely sounds right to me. The key is the 'right but not the obligation' part.
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Mica
23 days ago
A) A procedure that grants the holder the right but not the obligations to buy the main asset at the specified market price.
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Jenise
2 months ago
Hmm, I think the correct answer is C. A put option gives the holder the right, but not the obligation, to sell the underlying asset at a specified strike price.
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Chi
30 days ago
Exactly, it's about the right to sell the asset at a specific price.
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Beatriz
1 months ago
So, it's not about buying the main asset, right?
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Elke
1 months ago
So, a put option is essentially a form of insurance for investors in case the asset's price falls below the strike price.
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Afton
1 months ago
Yes, that's correct. It's important to remember that the holder is not obligated to sell, just has the right to.
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Roselle
1 months ago
I think you're right, a put option does give the holder the right to sell the underlying asset at a specified strike price.
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Dell
1 months ago
I agree, a put option gives the holder the right to sell the underlying asset at a specified strike price.
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Mitsue
2 months ago
I think the correct answer is C.
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Idella
2 months ago
I'm not sure, but I think it might be A. Buying at a specified market price seems like a put option to me.
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Vincent
2 months ago
I agree with Leonard, C makes sense because it's about selling at a specified price.
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Leonard
2 months ago
I think the answer is C.
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