GARP Financial Risk and Regulation (FRR) Series 2016-FRR Question # 62 Topic 7 Discussion

GARP Financial Risk and Regulation (FRR) Series 2016-FRR Question # 62 Topic 7 Discussion

2016-FRR Exam Topic 7 Question 62 Discussion:
Question #: 62
Topic #: 7

Which one of the following four statements correctly defines a non-exotic call option?


A.

A call option gives the call option buyer the obligation, but not the right, to buy the underlying instrument at a known price in the future.


B.

A call option gives the call option buyer the obligation, but not the right, to sell the underlying instrument at a known price in the future


C.

A call option gives the call option buyer the right, but not the obligation, to buy the underlying instrument at a known price in the future


D.

A call option gives the call option buyer the right, but not the obligation, to sell the underlying instrument at a known price in the future


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