A call option gives the owner the
A)right to sell the underlying security.
B)obligation to sell the underlying security.
C)right to buy the underlying security.
D)obligation to buy the underlying security.

Question

Quizplus · Accepted Answer

A call option gives the owner the right to buy the underlying security at a predetermined strike price, which can be exercised within a specified period of time. This means that the owner of a call option has the option to buy the underlying security, but is not obligated to do so. Therefore, the correct choice is C.

A Call Option Gives the Owner the