Investment VehiclesQuestion 82 of 100
A call option gives the holder the right to:
a.Sell the underlying at the strike price
b.Buy the underlying at the strike price before expiration
c.Receive a fixed dividend
d.Obligate the writer to buy shares
Explanation
A call option grants the holder the right, but not the obligation, to buy the underlying security at the strike price before expiration. The buyer profits if the underlying rises above the strike plus premium. The writer is obligated to sell if assigned.
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