Series 6 - Investment Company And Variable Contracts Products Representative Exam
Preview Mode
When an investor buys a call option, she has the______________ to buy the underlying security, but does not have the _____________ to buy the underlying security.
Right / Obligation
A
Obligation / Right
B
Option / Obligation
C
Obligation / Option
D
Explanations
The buyer of the call option is purchasing the right, but not the obligation to purchase the underlying security at a specified price (strike price) on or before the call option's expiration.
Pricing
Basic
Part of the questions for each course
-
- Course
- Questions
-
- SIE
- 20 of 150
-
- Series 6
- 30 of 500
-
- Series 7
- 50 of 625