A call option gives the owner the ________ to ________ the underlying security.
A) right; sell
B) obligation; sell
C) right; buy
D) obligation; buy

Question

Quizplus · Accepted Answer

A call option gives the owner the right to buy the underlying security. Option A and B are incorrect as they refer to selling, which is not what a call option allows. Option D is incorrect as it refers to an obligation, whereas owning a call option is a discretionary right, not an obligation.

A Call Option Gives the Owner the ________ to ________

A Call Option Gives the Owner the to