An option giving the owner the right, but not the obligation, to buy an asset is a:
ACash option
BCover option
CClaim option
DCall option
Answer & Solution
Correct answer: D. Call option
1. The holder may buy if it suits them.
2. They can also walk away.
3. That contract is a call option.
_Source: OpenStax Principles of Finance, Chapter 20, Risk Management and the Financial Manager._
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