A call option gives the owner the
A) right to sell the underlying asset at a fixed price.
B) right to buy the underlying asset at a fixed price.
C) obligation to sell the underlying asset at a fixed price.
D) obligation to buy the underlying asset at a fixed price.

Question

Quizplus · Accepted Answer

A call option gives the owner the right to buy the underlying asset at a fixed price, also known as the strike price. This right can be exercised at any time before the option's expiration date. Therefore, choice B is the correct answer. Choice A refers to a put option, while choices C and D refer to obligations, which are not associated with call options.

A Call Option Gives the Owner the