Options are contracts that give the purchasers the
A) opportunity to buy or sell an underlying asset.
B) the obligation to buy or sell an underlying asset.
C) the right to hold an underlying asset.
D) the right to switch payment streams.

Question

Quizplus · Accepted Answer

Options give the purchaser the opportunity to buy or sell an underlying asset, but not the obligation to do so. The purchaser can choose to exercise the option or let it expire.

Options Are Contracts That Give the Purchasers the