An investor (the buyer) purchases a call option from a seller. On the expiration date of a call option:

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On the expiration date of a call option, the buyer has the right (but not the obligation) to buy the underlying asset at the strike price, and the seller has the obligation to sell it to the buyer. Option A is incorrect because the buyer has a right, not an obligation, to buy the underlying asset. Option C is incorrect because the buyer does not have the obligation to sell the underlying asset. Option D is incorrect because a call option gives the buyer the right to buy the underlying asset, not to sell it.

An Investor (The Buyer) Purchases a Call Option from a Seller