The holder of an American call option has the right to:
A) buy the underlying asset at the exercise price on or before the expiration date.
B) buy the underlying asset only on the expiration date.
C) sell the underlying asset at the exercise price on or before the contract expiration date.
D) sell the underlying asset only at the expiration date.

Question

Quizplus · Accepted Answer

The holder of an American call option has the right to buy the underlying asset at the exercise price on or before the expiration date. This means that the holder can choose to exercise the option and buy the asset anytime before the expiration date at the agreed-upon exercise price.

The Holder of an American Call Option Has the Right