You would like to have the contract that gives you the right, but not the obliga

Question

You would like to have the contract that gives you the right, but not the obligation, to buy a stock of General Motors at a specified price. You should:

A)

sell a call option on stock of General Motors.

B)

either sell a call or buy a put option on stock of General Motors.

C)

buy a put option on stock of General Motors.

D)

sell a put option on stock of General Motors.

E)

buy a call option on stock of General Motors.

A)

sell a call option on stock of General Motors.

B)

either sell a call or buy a put option on stock of General Motors.

C)

buy a put option on stock of General Motors.

D)

sell a put option on stock of General Motors.

E)

buy a call option on stock of General Motors.

Explanation / Answer

To get the Right to buy a stock at a specified price at a pre-determined price (strike price)

I need to buy a call option on stock of General Motors

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