Question

Which of the following best describes call options?

A

A commitment to buy the underlying asset for a specific price.

B

The right but not the obligation to buy the underlying asset for a specific price.

C

The right but not the obligation to sell the underlying asset for a specific price.

D

A commitment to sell the underlying asset for a specific price.

Answer 1

As per the statements given in the question -
Correct Answer is Option B
Call Option - Call option is a financial contract which give buyer the right, but not the obligation to buy the stock.
Put option - Put Option is financial contract , Which give owner  the right , but not obligation to sell the stock.

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