AA CALL OPTION GIVES ITS OWNER THE RIGHT TO PURCHASE AN UNDERLYIN...

103) A

A call option gives its owner the right to purchase an underlying good at a specified price (strike price) for a

specified time. It's only when the value of the stock price exceeds the strike price that the holder of the call

can make money and they will exercise the option. When the stock's price minus the strike price is positive

the option has value and is in-the-money.