What Is a "Call" Option

question 25

Multiple Choice

What is a "call" option?

• A)A contract that gives the holder the right to sell an instrument at a pre-specified price.
• B)A contract that is derived from some other underlying quantity,index,asset or event.
• C)A contract that gives the holder the right to acquire an instrument at a pre-specified price.
• D)A contract that gives the holder the right to buy or sell something at a specified price.

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Definitions:

Profit

The financial gain achieved when the revenues generated from business activities exceed the expenses, costs, and taxes needed to sustain those activities.

Not-for-Profit

An organization that operates for purposes other than making a profit, often focusing on social, educational, or charitable activities.

Corporate Form

A legal structure for a business recognized as a separate legal entity from its owners, offering limited liability and other advantages.

Disadvantage

A condition or situation that makes it more difficult for someone or something to succeed or be effective.