Series 6 - Investment Company And Variable Contracts Products Representative Exam
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 / ObligationA
Obligation / RightB
Option / ObligationC
Obligation / OptionD
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.