An agreement that gives the owner the right, but not the obligation, to buy or sell a specific asset at a specific price for a set period of time is called a(n) _______________ contract.
A) Option.
B) Forward.
C) Futures.
D) Swap.
E) Spot.

Question

Quizplus · Accepted Answer

An option contract gives the owner the right, but not the obligation, to buy (in the case of a call option) or sell (in the case of a put option) a specific asset at a specific price within a specific time period.

An Agreement That Gives the Owner the Right, but Not