A Call Option Gives the Owner the Right to ________

question 98

Multiple Choice

A call option gives the owner the right to ________ an asset at a fixed price at some future date.

• A) sell
• B) buy
• C) hold
• D) none of the above

---

Definitions:

ROE

Equity Return, which determines financial success by dividing the net income by the equity of the shareholders.

Short-Term Debt

Debts or loans that are due for repayment within one year.

Blanket Inventory Lien

A security interest granted by a borrower to a lender, covering all of the borrower's inventory.

Revolving Line of Credit

A credit facility extended by a financial institution to a client that allows the borrower to draw, repay, and redraw loans advanced to them up to a specified maximum amount.