Type of option that gives right to buyer to buy underlying option at specific exercise price is considered as

A. European option

B. Australian option

C. call option

D. put option

Answer: Option C

Solution(By Examveda Team)

Type of option that gives right to buyer to buy underlying option at specific exercise price is considered 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.