A call option grants the buyer the right to purchase a specific number of securities on or before an expiration date at a specified price.

Question

Quizplus · Accepted Answer

A call option indeed grants the buyer the right, but not the obligation, to purchase a specific number of securities (such as stocks) at a specified price (known as the strike price) on or before a certain date (the expiration date).

A Call Option Grants the Buyer the Right to Purchase