What right does a put option provide to its holder?

A put option grants its holder the right to sell an underlying asset at a specified price, known as the strike price, within a specific time frame, typically until the option's expiration date. This means that if the market price of the underlying asset drops below the strike price, the holder can sell the asset at the higher strike price, thereby potentially minimizing losses or even generating a profit. The strategic use of put options often serves as a hedge against falling prices or as a speculative play on price declines.

In contrast, the other options outline different rights related to options trading but do not accurately define a put option's function. Buying an underlying asset is associated with a call option, negotiating future trades does not pertain directly to the rights of options contract holders, and exercising an option in the future is a more general statement that does not specify the unique right embedded in a put option. Hence, the correct answer clearly identifies the essential aspect of a put option.