20.

Which of the following statements will be true?

1. Call option gives the owner the right to sell.
2. Put option gives the owner the right to buy.

Group of answer choices

neither 1 nor 2

2 only

1 only

both 1 and 2

21.

A call gives the owner the right

Group of answer choices

and the obligation to buy an asset at a given price

but not the obligation to buy an asset at a given price

and the obligation to sell an asset at a given price

but not the obligation to sell an asset at a given price

22.

Gordon is considering purchasing either a call or a put option on XYZ stock. Each of the options has an exercise price of $40 and XYZ is trading at $44.50 per share. Which of the following statements about the options is correct?

Group of answer choices

The call option is in the money, whereas the put option is out of the money.

Both the put and the call option are in the money.

The put option is in the money, whereas the call option is out of the money.

Both the put and the call option are out of the money.