An American call option allows the buyer to
A) sell the underlying asset at the exercise price on or before the expiration date.
B) buy the underlying asset at the exercise price on or before the expiration date.
C) sell the option in the open market prior to expiration.
D) a and c.
E) b and c.

Question

Quizplus · Accepted Answer

An American call option gives the buyer the right to buy the underlying asset at the exercise price on or before the expiration date (B). Additionally, the buyer can sell the option in the open market prior to expiration (C).

An American Call Option Allows the Buyer to