A call option gives its owner the _________ an asset at the price within the option period.
A) right, but not the obligation, to buy
B) right, but not the obligation, to sell
C) right to borrow
D) obligation to buy
E) obligation to sell

Question

Quizplus · Accepted Answer

A call option gives the owner the right, but not the obligation, to buy an asset at the agreed-upon price (also known as the strike price) within a specified period of time. This means the owner has the choice to exercise the option or not, depending on market conditions and the value of the underlying asset.

A Call Option Gives Its Owner the _________ an Asset