Why should I choose AnalystNotes?
AnalystNotes specializes in helping candidates pass. Period.
Basic Question 5 of 18
A contract giving the owner the right to sell a specific stock at a specific price by a certain date is a ______.
B. call option
C. future contract
D. stock index future contract
A. put option
B. call option
C. future contract
D. stock index future contract
User Contributed Comments 5
| User | Comment |
|---|---|
| rana1970 | not right but obligation |
| jpducros | Remember: Call = Buy ; Put = Sell |
| poomie83 | future is a commitment to sell not a right |
| johntan1979 | I almost got thrown off by "by a certain date". You can exercise the option at any time, but not after the expiration date. |
| GBolt93 | Rana it's an obligation only if you exercise the option, which you have the right to do or not do. |
Thanks again for your wonderful site ... it definitely made the difference.
Craig Baugh
Learning Outcome Statements
determine the value at expiration and profit from a long or a short position in a call or put option
contrast forward commitments with contingent claims
CFA® 2025 Level I Curriculum, Volume 5, Module 2.