Which one of the following actions would provide you with the right, but not the obligation, to purchase the underlying asset during a specified period of time?

A) the purchase of a call option
B) the sale of a call option
C) the purchase of a put option
D) the sale of a put option
E) the swap of a put option

Call Option

A Call Option is a financial contract that gives the holder the right, but not the obligation, to buy a specific amount of an asset at a predetermined price within a specified period.

Put Option

A financial deal that provides the holder the privilege, yet not the compulsion, to offload a specified quantity of a basic asset at a fixed rate within an established timeframe.

Underlying Asset

The financial instrument (such as stocks, bonds, commodities) upon which derivatives and other financial instruments are based.