Elizabeth owns a call option on 100 shares of Microsoft stock and she has just decided to purchase those shares. This purchase is commonly referred to as:

Question

Quizplus · Accepted Answer

Exercising the option refers to the act of purchasing the underlying asset (in this case, the 100 shares of Microsoft stock) at the strike price specified in the call option contract. This is the only option that accurately describes the scenario presented in the question.

Elizabeth Owns a Call Option on 100 Shares of Microsoft