With a call option, the option holder:
A)Has the right to sell the asset.
B)Has the right to buy the asset.
C)Can buy or sell, it is their option.
D)Can buy the asset but only on the date specified.

Question

Quizplus · Accepted Answer

With a call option, the holder has the right to buy the underlying asset at a predetermined price (strike price) within a specific time period. This is different from a put option, which gives the holder the right to sell the asset. Therefore, the correct choice is B.

With a Call Option, the Option Holder