What type of option is the right to purchase stock at a fixed price for a specified period?
A)Flexibility option
B)Financial option
C)Legal option
D)Timing option

Question

Quizplus · Accepted Answer

The right to purchase stock at a fixed price for a specified period is a classical example of a financial option. Such options are contracts that give the buyer the right, but not the obligation, to buy or sell an underlying asset at a predetermined price within a specific time period. This type of option is commonly known as a call option, and it allows the holder to profit from an increase in the underlying security's price.

What Type of Option Is the Right to Purchase Stock