Deal of The Day! Hurry Up, Grab the Special Discount - Save 25% - Ends In 00:00:00 Coupon code: SAVE25
Welcome to Pass4Success

- Free Preparation Discussions
Mail Us support@pass4success.com
Location US
Mob_nav_barsMENU

SOFE AFE Exam - Topic 2 Question 94 Discussion

An instrument that grants the holder the right but not the obligation to buy the underlying asset at a specified strike price is known as:
C) Buy Option
A) Sell Option
B) Call Option
D) None of the above

SOFE AFE Exam - Topic 2 Question 94 Discussion

Actual exam question for SOFE's AFE exam
Question #: 94
Topic #: 2
[All AFE Questions]

An instrument that grants the holder the right but not the obligation to buy the underlying asset at a specified strike price is known as:

Show Suggested Answer Hide Answer
Suggested Answer: C

by Tarra at Jan 26, 2025, 09:37 AM

Limited Time Offer

25%

Off

Get Premium AFE Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

0/2000 characters
Submit Cancel
Frederick
7 months ago
No way, it's definitely not "None of the above."
upvoted 0 times
...
Derick
8 months ago
I thought it was just an option, not a specific type.
upvoted 0 times
...
Noel
8 months ago
Wait, isn't it a Buy Option?
upvoted 0 times
...
Malcom
8 months ago
100% agree, that's the right term.
upvoted 0 times
...
Jettie
8 months ago
It's definitely a Call Option!
upvoted 0 times
...
Glen
9 months ago
I remember the definition, but I can't recall if "buy option" is an actual term. I think it's B, but I should double-check my notes.
upvoted 0 times
...
Jaime
9 months ago
I keep mixing up call and put options. I think a call option is the one that lets you buy, but I might be second-guessing myself.
upvoted 0 times
...
Dorothy
9 months ago
Yeah, I practiced a similar question last week, and it was definitely about call options. I feel pretty confident about that.
upvoted 0 times
...
Val
9 months ago
I think it's a call option, but I'm not entirely sure. I remember it gives the right to buy, but the wording is tricky.
upvoted 0 times
...
Elfriede
9 months ago
Okay, let me think this through step-by-step. The question is asking about an instrument that gives the holder the right, but not the obligation, to buy the underlying asset. That sounds like the definition of a call option, so I'll select B.
upvoted 0 times
...
Ardella
9 months ago
The key here is that the instrument grants the right but not the obligation. That sounds like the definition of a call option to me, so I'm going to go with B.
upvoted 0 times
...
Rosina
9 months ago
Hmm, I'm a bit confused on the difference between a call option and a buy option. I'll need to review my notes to make sure I understand the terminology.
upvoted 0 times
...
Carman
9 months ago
I'm pretty sure this is a call option, since it grants the holder the right but not the obligation to buy the underlying asset.
upvoted 0 times
...
Gail
1 year ago
Hmm, I was going to say C) Buy Option, but then I remembered I already bought a lot of those. B) Call Option it is!
upvoted 0 times
Nadine
1 year ago
Yes, B) Call Option is the right answer for that instrument.
upvoted 0 times
...
Peggie
1 year ago
I agree, I also choose B) Call Option.
upvoted 0 times
...
Jarvis
1 year ago
I think B) Call Option is the correct choice.
upvoted 0 times
...
...
Adolph
1 year ago
B) Call Option, definitely. How else would I get my hands on that sweet, sweet underlying asset?
upvoted 0 times
Ammie
1 year ago
C) Buy Option
upvoted 0 times
...
Mozell
1 year ago
B) Call Option
upvoted 0 times
...
Andrew
1 year ago
A) Sell Option
upvoted 0 times
...
...
Cecil
1 year ago
D) None of the above, really? That's got to be a trick question. I'm sticking with B) Call Option.
upvoted 0 times
Shala
1 year ago
I agree with both of you. Call Option is the correct answer.
upvoted 0 times
...
Alesia
1 year ago
I'm not sure, but I think A) Sell Option gives you the right to sell the asset at a specific price.
upvoted 0 times
...
Major
1 year ago
I think it's B) Call Option too. It gives you the right to buy the asset at a specific price.
upvoted 0 times
...
...
Fatima
1 year ago
Ugh, this one's tricky. I'm going to have to go with B) Call Option, but I'm not 100% sure.
upvoted 0 times
Fletcher
1 year ago
Yeah, I'm pretty confident that the correct answer is B) Call Option.
upvoted 0 times
...
Scot
1 year ago
It's definitely not A) Sell Option or C) Buy Option, so B) Call Option seems like the best choice.
upvoted 0 times
...
Socorro
1 year ago
I agree, a Call Option gives the holder the right to buy the underlying asset at a specified price.
upvoted 0 times
...
Dana
1 year ago
I think you're right, it is B) Call Option.
upvoted 0 times
...
...
Tracie
1 year ago
I think it's A) Sell Option because it grants the holder the right to sell the underlying asset at a specified price.
upvoted 0 times
...
Skye
1 year ago
I agree with Corinne, it's B) Call Option because it gives the holder the right to buy the underlying asset at a specified price.
upvoted 0 times
...
Rasheeda
1 year ago
B) Call Option - That's the one! The definition fits perfectly.
upvoted 0 times
Herminia
1 year ago
D) None of the above - I'm not sure about this one, can you explain?
upvoted 0 times
...
Solange
1 year ago
B) Call Option - Yeah, call options give you the right to buy the asset.
upvoted 0 times
...
Stacey
1 year ago
A) Sell Option - I always get confused between call and sell options.
upvoted 0 times
...
Jackie
1 year ago
B) Call Option - That's the one! The definition fits perfectly.
upvoted 0 times
...
...
Corinne
1 year ago
B) Call Option
upvoted 0 times
...

Save Cancel