An American call option gives the owner
A) the right to buy or sell the stock at the strike price on or before the expiration date.
B) the right but not the obligation to buy the stock at the strike price on or before the expiration date.
C) the right and the obligation to buy the stock at the strike price on or before the expiration date.
D) the right but not the obligation to sell the stock at the strike price on or before the expiration date.

Question

Quizplus · Accepted Answer

An American call option gives the holder the right, but not the obligation, to buy the underlying asset at the strike price at any time up to and including the expiration date.

An American Call Option Gives the Owner