In working with ROPMs and options valuation,a financial option is a(n)
A)obligation to purchase an asset at a later date at a fixed price.
B)obligation to either purchase or sell an asset at a later date at a strike price.
C)right to purchase an asset a later date at a strike price.
D)right to purchase or sell an asset a later date at a fixed price.

Question

Quizplus · Accepted Answer

A financial option gives the holder the right, but not the obligation, to buy or sell an asset at a predetermined price (the strike price) before or at the expiration date.

In Working with ROPMs and Options Valuation,a Financial Option Is