Consider an option that gives the owner the right to buy a share for $20 only on the third Friday of May, next year. The option being described is:

Question

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This is a European call option, as it can only be exercised on a specific date (third Friday of May next year). An American option would allow the holder to exercise at any time up until the expiration date, while a put option would give the holder the right to sell a share at a specified price.

Consider an Option That Gives the Owner the Right to Buy