A ________ is the right to buy a particular stock at a certain price until a particular date, while a ________ gives the owner the right to sell a particular stock at a specified price until a particular date.
A) put option; call option
B) limit order; sales order
C) call option; put option
D) sales order; limit order
E) market purchase order; market sales order

Question

Quizplus · Accepted Answer

A put option gives the owner the right to sell a particular stock at a specified price until a particular date, while a call option is the right to buy a particular stock at a certain price until a particular date. Therefore, option C is the correct choice.

A ________ Is the Right to Buy a Particular Stock