A call option is a contract
A) that 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) that 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) in which the seller agrees to provide a particular good to the buyer on a specified future date at an agreed-upon price.
D) that 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

A call option 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. It does not involve selling shares or providing a particular good on a future date. Option contracts can be either call options or put options, but not both. Option contracts also give the holder the option to exercise their option or let it expire worthless.

A Call Option Is a Contract