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Examveda

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

A. put option

B. call option

C. money back options

D. out of money options

Answer: Option A

Solution(By Examveda Team)

An option that gives investors right to sell a stock at predefined price is classified as put option. A put option is an option contract giving the owner the right, but not the obligation, to sell a specified amount of an underlying security at a specified price within a specified time frame.

This Question Belongs to Commerce >> Financial Management

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