A(n) __________ gives the holder the right but not the obligation to buy or sell an asset in the future at the strike price determined today.

Question

Quizplus · Accepted Answer

An option is a financial derivative that gives the holder the right, but not the obligation, to buy (in the case of a call option) or sell (in the case of a put option) an asset at a predetermined price (the strike price) on or before a certain date.

A(n) __________ Gives the Holder the Right but Not the Obligation