A call option gives the owner the right, but not the obligation, to buy the underlying asset at a specified price (strike price) within a specified period of time (expiration date). It is up to the owner to decide if they want to exercise their option or not. A call option gives the owner the right, but not the obligation, to buy the underlying asset for a specified price within a specified period of time if the owner wishes to exercise the option.

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A Call Option

Question 13

Multiple Choice

A call option

A) gives the owner of the option the right to buy the underlying asset for a specified price within a specified period of time if the owner wishes to exercise his option.
B) obligates the owner of the option to buy the underlying asset for a specified price at a specified point in time unless the owner closes out his position.
C) gives the owner of the option the right to sell the underlying asset at a specified price within a specified period of time if the owner wishes to exercise his option.
D) obligates the owner of the option to sell the underlying asset for a specified price at a specified point in time unless the owner closes out his position.

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