If you have bought a right to buy foreign currency, you are:
A) a call writer.
B) a call buyer.
C) a put writer.
D) a put buyer.

Question

Quizplus · Accepted Answer

Buying a right to buy foreign currency is equivalent to buying a call option, which gives the buyer the right (but not the obligation) to buy the underlying currency at a specified price (strike price) within a certain time frame (expiration date). Therefore, the correct choice is B (call buyer).

If You Have Bought a Right to Buy Foreign Currency