The contract that gives the holder the right (but not the obligation) to buy or sell an asset within a specific time period is called __________.

Question

Accepted Answer

Option - An option is a type of financial derivative that provides the holder with the right, but not the obligation, to buy (call option) or sell (put option) an underlying asset at a predetermined price within a specified period. Unlike futures contracts, options do not require the holder to execute the trade, which makes them useful for hedging risk or speculating on price movements.

MCQ Detailed View