SOFE Exam AFE 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:

ASell Option

BCall Option

CBuy Option

DNone of the above

Show Suggested Answer

Suggested Answer: C

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

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Gail

2 months 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!

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Nadine

1 months ago

Yes, B) Call Option is the right answer for that instrument.

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Peggie

1 months ago

I agree, I also choose B) Call Option.

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Jarvis

1 months ago

I think B) Call Option is the correct choice.

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Adolph

2 months ago

B) Call Option, definitely. How else would I get my hands on that sweet, sweet underlying asset?

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Ammie

1 months ago

C) Buy Option

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Mozell

1 months ago

B) Call Option

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Andrew

2 months ago

A) Sell Option

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Cecil

3 months ago

D) None of the above, really? That's got to be a trick question. I'm sticking with B) Call Option.

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Shala

2 months ago

I agree with both of you. Call Option is the correct answer.

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Alesia

2 months ago

I'm not sure, but I think A) Sell Option gives you the right to sell the asset at a specific price.

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Major

2 months ago

I think it's B) Call Option too. It gives you the right to buy the asset at a specific price.

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Fatima

3 months ago

Ugh, this one's tricky. I'm going to have to go with B) Call Option, but I'm not 100% sure.

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Fletcher

29 days ago

Yeah, I'm pretty confident that the correct answer is B) Call Option.

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Scot

30 days ago

It's definitely not A) Sell Option or C) Buy Option, so B) Call Option seems like the best choice.

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Socorro

2 months ago

I agree, a Call Option gives the holder the right to buy the underlying asset at a specified price.

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Dana

2 months ago

I think you're right, it is B) Call Option.

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Tracie

3 months ago

I think it's A) Sell Option because it grants the holder the right to sell the underlying asset at a specified price.

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Skye

3 months 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.

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Rasheeda

3 months ago

B) Call Option - That's the one! The definition fits perfectly.

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Herminia

2 months ago

D) None of the above - I'm not sure about this one, can you explain?

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Solange

3 months ago

B) Call Option - Yeah, call options give you the right to buy the asset.

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Stacey

3 months ago

A) Sell Option - I always get confused between call and sell options.

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Jackie

3 months ago

B) Call Option - That's the one! The definition fits perfectly.

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Corinne

3 months ago

B) Call Option

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