If you have bought a right to buy foreign currency, you are:
A) a call writer.
B) a call buyer.
C) a put writer.
D) a put buyer.

Question

​If you have bought a right to buy foreign currency, you are:
A) ​a call writer.
B) ​a call buyer.
C) ​a put writer.
D) ​a put buyer.

Quizplus · Accepted Answer

Buying a right to buy foreign currency is a call option, so the correct answer would be B, a call buyer. A call option gives the holder the right, but not the obligation, to buy the underlying asset (foreign currency in this case) at a specified price (strike price) within a specific time frame (expiration date).

​If You Have Bought a Right to Buy Foreign Currency

If You Have Bought a Right to Buy Foreign Currency