Curious Minute answer

What is the term for a financial instrument that gives the holder the right, but not the obligation, to buy or sell an asset at a specific price before a certain date?

The answer

Option

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Why it's right

An option gives its holder the right to buy or sell an underlying asset at a set price during a specified period. A call is the right to buy; a put is the right to sell. The holder can choose not to exercise that right.

investor.gov: investor bulletins 63

Did you know?

Buying a call and buying a put give opposite rights. A call gives a right to buy, while a put gives a right to sell.

investor.gov: investor bulletins 63

How readers answered

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Sources: investor.gov