Question

Choose the correct term from each box.
Complete the paragraph about stock options.

A stock option is a purchased contract that gives the investor the right to buy 100 shares of stock at the
by the expiration date. A
option gives the contract holder the right to buy those shares.

Answer 1

A stock option is a purchased contract that gives the investor the right to buy 100 shares of stock at the **strike price** by the expiration date. A **call** option gives the contract holder the right to buy those shares.