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.
Question
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.
Solution
The right to buy an underlying asset in the options market lies with:
a. call buyers.
This is because a call option gives the holder (buyer) the right (but not the obligation) to buy an underlying asset at a specified price within a specific time period. On the other hand, a put option gives the holder the right to sell an underlying asset. European put buyers also have the right to sell, not buy. Writers of an option are the ones who sell these rights to the buyers.
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