Which of the Following Describes a Call Option

question 3

Multiple Choice

Which of the following describes a call option?

• A) The right to buy an asset for a certain price
• B) The obligation to buy an asset for a certain price
• C) The right to sell an asset for a certain price
• D) The obligation to sell an asset for a certain price

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Definitions:

High-Risk Situations

Situations that have a higher probability of leading to undesired outcomes or dangers.

Unhealthy Behaviors

Actions or habits that negatively affect an individual’s physical or mental health, such as smoking or excessive drinking.

Eating Out

The practice of consuming meals prepared and served by a food establishment rather than eating at home.

Overly Positive Outcome Expectancies

An individual's unrealistic anticipation or belief that favorable results will occur, often without considering potential negative outcomes.