A call option gives the holder
A)the right to buy something
B)the right to sell something
C)the obligation to buy something
D)the obligation to sell something
E)none of the above

Question

Quizplus · Accepted Answer

A call option is a contract that gives the holder the right, but not the obligation, to buy an underlying asset at a specified price (strike price) within a certain time period. Therefore, the holder has the right to buy something (the underlying asset) if they choose to exercise the option.

A Call Option Gives the Holder