Which financial market instrument grants the buyer the right, but not the obligation, to buy an asset at a predetermined price?
AForward Contract
BPut Option
CCall Option
DFutures Contract
Explanation
* A Call Option gives the holder the right (without obligation) to purchase an underlying asset at a specified strike price before or on expiry.
* A Put Option gives the right to sell an asset.
* Futures and Forward contracts impose mandatory obligations on both contractual parties.
Exam Relevance
- Topic: Financial Derivatives
- Subtopic: Options Contracts

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