New Year Sale ! Hurry Up, Grab the Special Discount - Save 25% - Ends In 00:00:00 Coupon code: SAVE25
Welcome to Pass4Success

- Free Preparation Discussions
Mail Us support@pass4success.com
Location US
Mob_nav_barsMENU

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:

Show Suggested Answer Hide Answer
Suggested Answer: C

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

Limited Time Offer

25%

Off

Get Premium CTFA Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel
Magda
2 months ago
I'm going with C. Seems the most precise and accurate description of a put option.
upvoted 0 times
...
Maryann
2 months ago
Haha, 'put obligations'? I don't think that's a thing. C is the clear winner here.
upvoted 0 times
...
Tricia
2 months ago
I agree with C. The other options don't quite capture the essence of a put option.
upvoted 0 times
Casandra
1 months ago
D) An activity that grants the holder the right to put obligations to the underlying asset at the specified strike price.
upvoted 0 times
...
Diego
1 months ago
C) An instrument that grants the holder the right but not the obligations to sell the underlying asset at the specified strike price.
upvoted 0 times
...
Edward
2 months ago
B) A strategy that grants the holder the right to sell the underlying asset at the actual price.
upvoted 0 times
...
Yvonne
2 months ago
A) A procedure that grants the holder the right but not the obligations to buy the main asset at the specified market price.
upvoted 0 times
...
...
Markus
2 months ago
C definitely sounds right to me. The key is the 'right but not the obligation' part.
upvoted 0 times
Kristofer
1 months ago
C) An instrument that grants the holder the right but not the obligations to sell the underlying asset at the specified strike price.
upvoted 0 times
...
Pansy
1 months ago
B) A strategy that grants the holder the right to sell the underlying asset at the actual price.
upvoted 0 times
...
Mica
2 months ago
A) A procedure that grants the holder the right but not the obligations to buy the main asset at the specified market price.
upvoted 0 times
...
...
Jenise
3 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.
upvoted 0 times
Chi
2 months ago
Exactly, it's about the right to sell the asset at a specific price.
upvoted 0 times
...
Beatriz
2 months ago
So, it's not about buying the main asset, right?
upvoted 0 times
...
Elke
2 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.
upvoted 0 times
...
Afton
2 months ago
Yes, that's correct. It's important to remember that the holder is not obligated to sell, just has the right to.
upvoted 0 times
...
Roselle
3 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.
upvoted 0 times
...
Dell
3 months ago
I agree, a put option gives the holder the right to sell the underlying asset at a specified strike price.
upvoted 0 times
...
Mitsue
3 months ago
I think the correct answer is C.
upvoted 0 times
...
...
Idella
3 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.
upvoted 0 times
...
Vincent
3 months ago
I agree with Leonard, C makes sense because it's about selling at a specified price.
upvoted 0 times
...
Leonard
3 months ago
I think the answer is C.
upvoted 0 times
...

Save Cancel