Call options give the buyer which of the following?
A)the obligation to sell a financial asset at a strike price set today.
B)the right to sell a financial asset at a strike price set today.
C)the obligation to buy a financial asset at a strike price set today.
D)the right but not the obligation to buy a financial asset at a strike price set today up to the expiration date on the contract.

Question

Quizplus · Accepted Answer

Call options give the buyer the right, but not the obligation, to buy a financial asset at a predetermined strike price before the contract's expiration date. This means that the buyer can choose to exercise their option to buy the asset if it is profitable for them to do so, or they can let the contract expire if it is not profitable.

Call Options Give the Buyer Which of the Following