Which one of the following statements correctly describes your situation as the owner of an American call option?
A) You are obligated to buy at a set price at any time up to and including the expiration date.
B) You have the right to sell at a set price at any time up to and including the expiration date.
C) You have the right to buy at a set price only on the expiration date.
D) You are obligated to sell at a set price if the option is exercised.
E) You have the right to buy at a set price at any time up to and including the expiration datE.

Question

Quizplus · Accepted Answer

As the owner of an American call option, you have the right to buy the underlying asset at a set price (strike price) at any time up to and including the expiration date. Therefore, option E correctly describes the situation of the owner of an American call option.

Which One of the Following Statements Correctly Describes Your Situation