Which party has the right but not the obligation in an options contract?(1.0 Marks)The SellerAThe BuyerBThe ExchangeCThe Stock Market

In the options market, the right to buy an underlying asset lies with:Question 1Select one:a.call buyers.b.put buyers.c.European put buyers.d.writers of an option.

Options are contracts that give the purchasers the_______a.option to buy or sell an underlying assetb.the obligation to buy or sell an underlying assetc.the right to hold an underlying assetd.the right to switch payment streams.

An options contract:Question 2Select one:a.is another name for a forward contract.b.gives the right to buy or sell an underlying asset at a predetermined price by a specified time.c.may be written for debt securities but not equities.d.may be written for equities but not debt securities.

A call option gives the holder____a.the obligation to buy somethingb.the right to sell somethingc.the right to buy somethingd.the obligation to sell somethinge.None of the Above

Which of the following statement describes an option contract and the major distinction between a call and a put option?Group of answer choicesAn option is defined as the right, but not the obligation, to buy or to sell a specified amount of a given stock, commodity, currency, index or debt, at a specified price (the strike price) for a specified period of time.A put option contract gives a buyer the right not the obligation to sell an underlying security at certain price specified in the put option contract.All of the given answers.A call option contract gives a buyer the right not the obligation to purchase an underlying security at certain price specified in the call option contract.