A Call Option Is an Agreement That

question 96

Multiple Choice

A call option is an agreement that:

• A)obligates both the buyer and seller to a future transaction.
• B)grants the seller the right to buy a security at a predetermined price.
• C)gives the buyer the right to purchase an asset at some point in the future.
• D)grants the seller the right, but not the obligation, to sell an asset.
• E)presets a price but not a time period.