Question: What is the difference between a call and a put? A call is the right to buy an underlying security; a put is the right

What is the difference between a call and a put?

  1. A call is the right to buy an underlying security; a put is the right to sell it.
  2. A call entails an obligation to buy an underlying security; a put is the obligation to sell it.
  3. A call entails a right to sell an underlying security; a put entails the right to buy it.

(D A call is a right to buy an underlying security at a higher price than a put.

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