An American call option allows the buyer to

Name: An American call option allows the buyer to
Brand: Quizplus
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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. The buyer also has the option to sell the option in the open market prior to expiration, creating the possibility for profit even if the underlying asset has not yet reached the exercise price. Therefore, the correct answer is B and C.

An American Call Option Allows the Buyer to