A Call Option Gives the Owner the ________ to ________

question 33

Multiple Choice

A call option gives the owner the ________ to ________ the underlying security.

• A) right; sell
• B) obligation; sell
• C) right; buy
• D) obligation; buy

---

Definitions:

Kinked Demand Curve Model

A model in economics illustrating how firms in oligopoly markets might maintain stable prices despite changes in cost or demand, due to the asymmetric responses of rivals to price changes.

Price Reduction

A decrease in the selling price of goods or services, often to attract more buyers or respond to market conditions.

Non-OPEC Oil

Crude oil produced by countries that are not members of the Organization of the Petroleum Exporting Countries (OPEC).

World Market

A global marketplace where goods, services, and financial assets are traded across countries.