A call option gives the buyer the right (but not the obligation) to buy an underlying instrument (such as a T-bill futures contract) at a specified price (called the exercise or strike price).

Question

Quizplus · Accepted Answer

A call option indeed grants the buyer the right, but not the obligation, to purchase an underlying asset, such as a T-bill futures contract, at a predetermined price known as the exercise or strike price, before the option expires.

A Call Option Gives the Buyer the Right (But Not