An American call option is a contract that _______ the agreed upon quantity at the agreed upon price no later than the expiration date.
A) Obligates the owner to purchase.
B) Gives the owner the option, but not the obligation, to purchase.
C) Grants the owner the option, but not the obligation, to sell.
D) Obligates the buyer to purchase, at the discretion of the seller.
E) Obligates the owner to sell.

Question

Quizplus · Accepted Answer

An American call option gives the holder the right, but not the obligation, to buy a specified quantity of an asset at a predetermined price at any time before the contract expires.

An American Call Option Is a Contract That _______ the Agreed