A Call Option on a Share Is a Financial Instrument

question 103

Multiple Choice

A call option on a share is a financial instrument defined by which of the following statements?

• A)It obligates the investor holding it to sell the share at the specified price at the stated date in the future.
• B)It obligates the investor holding it to buy the share at the specified price at the stated date in the future.
• C)It gives the investor holding it the right,but not the obligation,to buy the share at the specified price at the stated date in the future.
• D)It gives the investor holding it the right,but not the obligation,to sell the share at the specified price at the stated date in the future.

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