General Studies · Financial Derivatives
Which of the following best describes an American call option?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
Share:
- 1It is a contract that guarantees a fixed return irrespective of market movements.
- 2It gives the holder the right to buy the underlying asset at a specified price within a specified period.✓
- 3It assists the holder to purchase the underlying asset at the market price on expiry only.
- 4It gives the holder the right to sell the underlying asset at a specified price within a specified period.
Correct answer
It gives the holder the right to buy the underlying asset at a specified price within a specified period.
Download Single Question PDF
Save this question and verified answer as a clean study sheet with live clickable link.
👥
Share with Friends & Study Groups
Challenge your peer aspirants on WhatsApp or Telegram to solve this question!
Online Test Series
Start Free Mock Test →Preparing for General Studies?
Practice full-length mock tests with real exam timers, instant score analysis, and all-India ranking.
Chapter Practice
Practice Financial Derivatives MCQs →Want more practice questions on Financial Derivatives?
Solve complete topic-wise tests with detailed solutions on GkGet.
Related Practice Questions
Recommended practice questions in General Studies · Financial Derivatives