An option is:
A) The right to buy or sell a commodity at a fixed price
B) The right to buy a commodity at a fixed price
C) The right but not the obligation to buy or sell a commodity at a fixed price
D) The right but not the obligation to buy a commodity at a fixed price

Question

Quizplus · Accepted Answer

An option gives the holder the right but not the obligation to buy or sell a commodity at a fixed price. This means that the holder can choose to exercise the option or not, depending on whether it is profitable for them to do so. Option contracts are commonly used in financial markets to manage risk and speculate on market movements.

An Option Is