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Jen Is the Holder of a European Call Option

Question 9

Multiple Choice
Jen is the holder of a European call option. Given this, she:

Jen is the holder of a European call option. Given this, she:


A) is obligated to buy if the option is exercised.
B) has the right to sell if she chooses to do so.
C) has a right to buy but only on the expiration date.
D) is obligated to sell if the option is exercised.
E) has a right to buy at any time before the option expires.

Correct Answer:

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