A call option allows the buyer to
A) sell the underlying asset at the exercise price on or before the expiration date.
B) buy the underlying asset at the exercise price on or before the expiration date.
C) sell the option in the open market prior to expiration.
D) sell the underlying asset at the exercise price on or before the expiration date and sell the option in the open market prior to expiration.
E) buy the underlying asset at the exercise price on or before the expiration date and sell the option in the open market prior to expiration.

Question

Quizplus · Accepted Answer

A call option gives the buyer the right, but not the obligation, to buy the underlying asset at the exercise price on or before the expiration date.

A Call Option Allows the Buyer to