An "option" is
A)a contract giving the seller (writer)of the option the right,but not the obligation,to buy (call)or sell (put)a given quantity of an asset at a specified price at some time in the future.
B)a contract giving the owner (buyer)of the option the right,but not the obligation,to buy (call)or sell (put)a given quantity of an asset at a specified price at some time in the future.
C)a contract giving the owner (buyer)of the option the right,but not the obligation,to buy (put)or sell (call)a given quantity of an asset at a specified price at some time in the future.
D)a contract giving the owner (buyer)of the option the right,but not the obligation,to buy (put)or sell (sell)a given quantity of an asset at a specified price at some time in the future.

Question

Quizplus · Accepted Answer

An option is a contract that gives the owner (buyer) of the option the right, but not the obligation, to buy (call) or sell (put) a given quantity of an asset at a specified price at some time in the future. The seller (writer) of the option is obligated to sell or buy the asset if the owner (buyer) decides to exercise their option. Therefore, option B is the correct definition of an option.

An "Option" Is