Which of the following grants its owner the right to purchase an asset at a stated price?
I.American call
II.European call
III.American put
IV.European put

Question

Quizplus · Accepted Answer

Both American call and European call options grant their owners the right to purchase an asset at a stated price, while American put and European put options grant the right to sell an asset at a stated price. Therefore, options I and II are correct, while options III and IV are incorrect.

Which of the Following Grants Its Owner the Right to Purchase