Final answer:
A Put Option allows selling shares at a future date for an agreed price. Stock options enable speculation on future stock prices with predetermined terms.
Explanation:
A Put Option is the option to sell shares of stock at a specified time in the future at an agreed-upon price. It gives the holder the right, but not the obligation, to sell the stock.
Stock options are financial instruments that provide individuals with the opportunity to buy or sell stocks in the future at predetermined prices, allowing investors to speculate on the price movement of stocks.
Investing in options involves understanding the risks and potential rewards associated with predicting the future price movements of stocks.
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