Question

A bank that buys a call option:

A. has the right to accept delivery of the underlying security at the contract price if they wish.

B. has the right to make delivery of the underlying security at the contract price if they wish.

C. is obligated to accept delivery of the underlying security at the contract price.

D. is obligated to make delivery of the underlying security at the contract price.

E. is exposed to unlimited losses and limited gains.

Answer

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