An American call option gives its owner the right to buy stock at a fixed strike price during a specified period of time.

Name: An American call option gives its owner the right to buy stock at a fixed strike price during a specified period of time.
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Question

Quizplus · Accepted Answer

This statement accurately describes the nature of an American call option. The option holder has the right, but not the obligation, to purchase the underlying stock at the fixed strike price during a set timeframe, known as the option's expiration period.

An American Call Option Gives Its Owner the Right to Buy