An Investor Who Purchases a Call Option

question 16

Multiple Choice

An investor who purchases a call option:

• A) Has the right to buy a given stock at a specified price during a designated time period.
• B) Has the right to sell a given stock at a specified price during a designated time period.
• C) Has the obligation to buy a given stock at a specified price during a designated time period.
• D) Has the obligation to sell a given stock at a specified price during a designated time period.
• E) None of the above.

---

Definitions:

Folic Acid

A B-vitamin essential for cell growth and metabolism, important for the production of DNA and RNA, and crucial for preventing birth defects during pregnancy.

Calcium

A chemical element and essential nutrient that is crucial for many bodily functions, including bone health and nerve transmission.

Iron

A chemical element with symbol Fe and atomic number 26, essential for human health as it plays a critical role in oxygen transport and metabolic processes.

Teratogens

Agents, such as chemicals or viruses, that can cause birth defects or abnormalities in a developing fetus when exposed to them during pregnancy.