Type of option that gives right to buyer to sell underlying option at specific exercise price is considered as

A. call option

B. put option

C. European option

D. Australian option

Answer: Option B

Solution(By Examveda Team)

Type of option that gives right to buyer to sell underlying option at specific exercise price is considered as put option. A put option is a contract giving the owner the right, but not the obligation, to sell a specified amount of an underlying security at a pre-determined price within a specified time frame.