Question

What is the primary difference between a Call Option and a Put Option?

a.

A Call Option gives the right to buy an asset, while a Put Option gives the right to sell an asset.

b.

A Call Option gives the right to sell an asset, while a Put Option gives the right to buy an asset.

c.

Both Call and Put Options give the right to buy an asset.

d.

Both Call and Put Options give the right to sell an asset.

Posted under IC 89 Management Accounting

Answer: (a).A Call Option gives the right to buy an asset, while a Put Option gives the right to sell an asset. Explanation:In options trading, a Call Option provides the right to buy an underlying asset, and a Put Option provides the right to sell an underlying asset.

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Q. What is the primary difference between a Call Option and a Put Option?
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