Chapter 02 · Section 2.1

Call option

A call option:

a) gives the option holder the right - not the obligation - to buy the underlying asset at a specified price.
• b) gives the option holder the right - not the obligation - to sell the underlying asset at a specified price.
  No. Answer (b) is not correct for a call option. It would be correct for a put option.
  c) gives the option writer the obligation - not the right - to sell the underlying asset at a specified price.

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