Which of the following is the right to sell?
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A. B. C. D.D
The right to sell an underlying asset at a specified price and time is known as a put option. Therefore, the correct answer is D - Put option.
A put option is a type of financial contract between a buyer and a seller. The buyer of a put option has the right, but not the obligation, to sell an underlying asset at a predetermined price (also known as the "strike price") on or before a specific date (also known as the "expiration date"). In exchange for this right, the buyer pays the seller a premium.
Put options are used to protect against a decline in the value of an asset. For example, if an investor owns a stock and is concerned that its price may decrease in the future, they can purchase a put option to sell the stock at a predetermined price. If the price of the stock does indeed decrease, the investor can exercise their put option and sell the stock at the higher strike price, thereby limiting their losses.
System option and strategic option are not common terms in the options market. A call option, on the other hand, gives the holder the right, but not the obligation, to buy an underlying asset at a predetermined price on or before a specific date. A call option is essentially the opposite of a put option. Instead of protecting against a decline in the value of an asset, a call option allows investors to profit from an increase in its value.
In summary, the right to sell an underlying asset is known as a put option, which is the correct answer to the question.