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.
c) gives the option writer the obligation - not the right - to sell the underlying asset at a specified price.
A put option gives the holder the right to sell the underlying asset.
(a) is correct but (b) is not. Generally, an option does not give both the right to buy and the right to sell.
Note, that whereas the holder of a call can always exercise his right, the writer of a call must fulfill his obligation only if he is assigned an exercise notice.
(c) is correct but (b) is not. Generally, if the call holder has the right to sell, the call writer cannot have the obligation to sellat the same time.