A contract which gives the buyer the right to buy a security at a set price on or before the contract's expiration date is called:
A) A put option
B) A futures contract
C) A short hedge
D) A call option
E) None of the above

Question

Quizplus · Accepted Answer

A call option grants the holder the right, but not the obligation, to buy a security at a specified price within a specific time period.

A Contract Which Gives the Buyer the Right to Buy