When you own ____, there is no obligation on your part; however, when you own ____, there is an obligation on your part.
A) call options; put options
B) futures contracts; call options
C) forward contracts; futures contracts
D) call options; forward contracts

Question

​When you own ____, there is no obligation on your part; however, when you own ____, there is an obligation on your part.
A) ​call options; put options
B) ​futures contracts; call options
C) ​forward contracts; futures contracts
D) ​call options; forward contracts

Quizplus · Accepted Answer

When you own call options, you have the right but not the obligation to buy an asset at a specified price within a certain period. However, when you own forward contracts, you have an obligation to buy or sell an asset at a predetermined future price and date, creating an obligation on your part.

​When You Own ____, There Is No Obligation on Your

When You Own ____, There Is No Obligation on Your