Question

What is the option to sell shares of stock at a specified time in the future called? a stock exchange a call option a future a put option

Answer 1

A put option

Step-by-step explanation:

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Answer 2

A put option

Step-by-step explanation:

• An option is a finantial instrument that allows you to chose wether you buy (a call option) or sell (a put option) an specific good or intrument in a specific time in the future, at a specific price.
• When talking about an option, you can choose if you are going to exercise your right to buy (if it is a call option) or sell (if it is a put option).
• This is a difference between a future and an option: a future is a compromise to buy or sell an specific commodity or finantial instrument, while the option makes it optional (to buy or sell).
• A stock exchange is a simple exchange of stocks, but without a compromise to do it at a specific time in the future or prices. There is no option or obligation to buy or sell in a common stock change case.
• In this case, we are talking about a put option (an option to sell), and the finantial instrument that is linked to the option are shares of stocks.
• Then, in a specified time in the future you will be able to sell shares of stock using a put option.