The right to sell an underlying futures at a specific time is:

The right to sell an underlying futures at a specific time is:

• A. A call option
• B. A futures contract
• C. A put option
• D. A forward contract

Answer: (C)

The key idea is that a put option grants the holder the right, but not the obligation, to sell the underlying asset at a set strike price on or before a given date. When the underlying is a futures contract, a put on futures gives you the right to sell that futures contract at the strike price at the specified time. This is different from a futures or forward contract, which are obligations to transact and not optional rights, and different from a call option, which gives the right to buy. So the description aligns with a put option on futures.

The key idea is that a put option grants the holder the right, but not the obligation, to sell the underlying asset at a set strike price on or before a given date. When the underlying is a futures contract, a put on futures gives you the right to sell that futures contract at the strike price at the specified time. This is different from a futures or forward contract, which are obligations to transact and not optional rights, and different from a call option, which gives the right to buy. So the description aligns with a put option on futures.