A European call option gives the buyer the right to ________.
A) buy the underlying asset at the exercise price on or before the expiration date
B) buy the underlying asset at the exercise price only at the expiration date
C) sell the underlying asset at the exercise price on or before the expiration date
D) sell the underlying asset at the exercise price only at the expiration date

Question

Quizplus · Accepted Answer

A European call option gives the buyer the right to buy the underlying asset at the exercise price only at the expiration date, unlike American options which can be exercised at any time before expiration.

A European Call Option Gives the Buyer the Right to ________