An option is a contract that always
A) gives the owner the right,but not the obligation,to buy shares of a stock at a specified price within the time limits of the contract.
B) gives the owner the right,but not the obligation,to sell shares of a stock at a specified price within the time limits of the contract.
C) states that the seller agrees to provide a particular good to the buyer on a specified future date at an agreed-upon price.
D) gives the owner the right,but not the obligation,to buy or sell shares of a stock at a specified price within the time limits of the contract.

Question

Quizplus · Accepted Answer

An option contract gives the owner the right, but not the obligation, to buy or sell shares of a stock at a specified price within the time limits of the contract. This means that the owner can choose to buy or sell the shares, but is not obligated to do so. Option contracts can be used for various trading strategies, such as hedging or speculation.

An Option Is a Contract That Always