A ________ is a derivative security that gives the owner the right,but not the obligation,to buy an asset at a fixed price for a specified period of time.
A)futures contract
B)call option
C)put option
D)swap
E)forward contract

Question

Quizplus · Accepted Answer

A call option is a derivative security that gives the owner the right, but not the obligation, to buy an asset at a fixed price (known as the strike price) for a specified period of time. The owner of a call option expects the price of the underlying asset to increase, so they will exercise the option to buy the asset at the lower strike price and sell it in the market at a higher price, making a profit.

A ________ Is a Derivative Security That Gives the Owner