Option buyers can have a(n)__________ of exercising their options.Options sellers can have a(n)__________ of exercising their options.
A) Obligation; obligation
B) Obligation; right
C) Right; right
D) Right; obligation

Question

Quizplus · Accepted Answer

Option buyers are not obligated to exercise their options, but they have the right to do so. On the other hand, option sellers are obligated to sell or buy the underlying asset if the option is exercised by the buyer, but they do not have the right to exercise the option themselves. Therefore, the correct answer is D, as option buyers have the right to exercise their options, while option sellers have the obligation to fulfill the terms of the option if it is exercised by the buyer.

Option Buyers Can Have A(n)__________ of Exercising Their Options