A derivative instrument that gives the holder the right but not the obligation to buy the underlying asset at a specified price before or on a specified date is called a/an_______
Call option.
Forward.
Swap
Put option
Commodity futures.
Homework Answers
Answer - Call option
Call option is the derivative that gives owner of that option but not obligation to buy the underlying asset.
Put option is the derivative that gives owner of that option but not obligation to sell the underlying asset.
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