The difference between puts and calls is:

Question

Quizplus · Accepted Answer

A call option gives the holder the right, but not the obligation, to purchase an underlying asset at an agreed-upon price (strike price) within a specific time period. On the other hand, a put option gives the holder the right, but not the obligation, to sell an underlying asset at an agreed-upon price (strike price) within a specific time period. Therefore, the correct difference between puts and calls is that a call is an option to buy, while a put is an option to sell.

B, C, and D are incorrect.

The Difference Between Puts and Calls Is