The Buyer of a Call Option Has the Obligation to Buy

question 127

True/False

The buyer of a call option has the obligation to buy shares at the strike price.

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Definitions:

Target Corporation

A large American retail company that operates large-box department stores across the United States.

Short-Form Mergers

A merger between a parent company and its subsidiary where approval by the shareholders of the subsidiary is not required.

Shareholder Approval

The process by which the shareholders of a company authorize or endorse certain corporate actions typically through voting at shareholder meetings.

Beachhead Acquisition

A takeover in which an aggressor gradually accumulates the target company’s shares.