A contract that gives the buyer the right to buy commodity or a foreign currency from the seller at a fixed price is called as

A. put option

B. call option

C. cross option

D. currency swap

Answer: Option B

Solution(By Examveda Team)

A contract that gives the buyer the right to buy commodity or a foreign currency from the seller at a fixed price is called as call option. Call options are financial contracts that give the option buyer the right, but not the obligation, to buy a stock, bond, commodity or other asset or instrument at a specified price within a specific time period.