New IFSCA Phase 1 Results Out - Enroll Here for Phase 2

    Register

    Question

    Which of the following is not a characteristic of a Call Option?

    A The holder has an obligation to exercise the option Correct Answer Incorrect Answer
    B There is a strike price of the option Correct Answer Incorrect Answer
    C Put option has an expiration date Correct Answer Incorrect Answer
    D There is a right to sell the underlying at the strike price Correct Answer Incorrect Answer
    E All are correct Correct Answer Incorrect Answer

    Solution

    In any option (put or call), the holder buys the option so that she can opt the best choice. So for the holder of the option, there is a right but no compulsion.

    Practice Next