Which of the Following Best Describes an Option Contract in Principle

question 16

Multiple Choice

Which of the following best describes an option contract in principle?

• A)An option is a contract that gives its holder the obligation to buy or sell an asset at a predetermined price within a specified period of time.
• B)An option is a contract that gives its seller the right to buy or sell an asset at a predetermined price within a specified period of time.
• C)An option is a contract that gives its holder the right to buy or sell an asset at a predetermined price within a specified period of time.
• D)An option is a contract that gives its writer the right to buy or sell an asset at a predetermined price within a specified period of time.