With a call option, the option holder:
A) has the right to sell the asset.
B) has the right to buy the asset.
C) can buy or sell, it is their option.
D) can buy the asset but only after the date specified.

Question

Quizplus · Accepted Answer

With a call option, the option holder has the right to buy the underlying asset at a specified strike price within a certain timeframe. Hence, option B, which states that the option holder has the right to buy the asset, is the correct choice. A is incorrect because it describes the rights of a put option holder, not a call option holder. C is incorrect because the option holder does not have the right to sell the asset. D is incorrect because the option holder can buy the asset at any time before the expiration date of the option.

With a Call Option, the Option Holder