In the options market,a ________ gives the right to buy currency and a ________ gives the right to sell.
A) Flat option, put option
B) Put option, flat option
C) Call option, put option
D) Put option, call option

Question

Quizplus · Accepted Answer

In the options market, a call option gives the holder the right to buy an underlying asset, in this case, currency while a put option gives the holder the right to sell an underlying asset. Therefore, option C, call option and put option, are the correct choices. Option D is incorrect because it switches the order of put and call options. Option A is incorrect because there is no such thing as a "flat option" in the options market. Option B is also incorrect because it switches the order of put and call options.

In the Options Market,a ________ Gives the Right to Buy