Question

In a derivatives contract, the party who has the right but not the obligation to buy an asset is said to have a:

Q: Answer-In a derivatives contract, the party who has the right but not the obligation to buy an asset is sai...

Call Option Gives the holder the right to buy the underlying asset at a specified price strike price on or before a specified date. Put Option Gives the holder the right to sell the underlying asset. Long Position Refers to buying or holding the derivative contract. Short Position Refers to selling or writing the derivative contract. Therefore, a party with the right to buy call who has purchased that right holds a Long Call Option position . In a futures contract, both parties have an obligation, not a right.