Which one of the following statements correctly describes your situation as the owner of an American call option?
A) You are obligated to buy at a set price at any time up to and including the expiration date.
B) You have the right to sell at a set price at any time up to and including the expiration date.
C) You have the right to buy at a set price only on the expiration date.
D) You are obligated to sell at a set price if the option is exercised.
E) You have the right to buy at a set price at any time up to and including the expiration date.

Question

Quizplus · Accepted Answer

Owning an American call option gives the holder the right, but not the obligation, to buy the underlying asset at a predetermined price at any time before or on the option's expiration date.

Which One of the Following Statements Correctly Describes Your Situation