Q56
A contract that gives the buyer the right to buy commodity or a foreign currency from the seller at a fixed price is called as
A.
put option
B.
call option
AnswerC.
cross option
D.
currency swap
Answer: Option B
Solution
Answer: Option B
Solution:
A contract that gives the buyer the right to buy commodity or a foreign currency from the seller at a fixed price is called as call option. Call options are financial contracts that give the option buyer the right, but not the obligation, to buy a stock, bond, commodity or other asset or instrument at a specified price within a specific time period.