Which of the following best defines a call option?
A) An option that can be exercised at any time until its expiration date.
B) The right to buy an asset at a fixed price during a particular period of time.
C) The dollar amount of a bond's par value that is exchangeable for one share of stock.
D) The number of shares per bond received for conversion into stock.
E) The value of a convertible bond if it was immediately converted into common stock.

Question

Quizplus · Accepted Answer

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

Which of the Following Best Defines a Call Option