A ________ gives its holder the right to buy an asset for a specified exercise price on or before a specified expiration date.
A) call option
B) futures contract
C) put option
D) interest rate swap

Question

Quizplus · Accepted Answer

A call option gives its holder the right to buy an asset at a specified price, known as the exercise price or strike price, on or before a specified expiration date. This allows the holder to potentially profit from an increase in the price of the underlying asset, without actually owning the asset itself.

A ________ Gives Its Holder the Right to Buy an Asset