SIE practice questioneasyOptions - Calls and Puts
Buying a call option gives the investor the right to:
- AReceive dividends from the underlying stock
- BSell the underlying security at a set price
- CBuy the underlying security at a set price✓ Correct answer
- DVote at annual shareholder meetings
Explanation
Why C — Buy the underlying security at a set price
A call option gives the right (not obligation) to buy the underlying asset. Puts provide selling rights, while dividends and voting are privileges of stock ownership, not options.
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