A ___ option gives the buyer the right to purchase a specific number of shares of a specific company from the writer at a specific purchase price by a specific date.
A) put
B) call
C) stock index
D) swap

Question

Quizplus · Accepted Answer

A call option gives the buyer the right, but not the obligation, to purchase a specific number of shares of a specific company from the writer at a specific purchase price (called the strike price) by a specific date (called the expiration date). This is a common type of options contract in the stock market.

A ___ Option Gives the Buyer the Right to Purchase