What kind of option allows the holder to exercise the option only the expiration date?

The person that takes the ___ side of an option has the choice to exercise, while the person that takes the ____ side of the option has the obligation to fulfill the contract.

1. If the exercise price of an option equals the current stock price, the option is _____.
2. If the exercise price of a call is greater than the current price, the option is ____.
3. If the exercise price of a call is lower than the current price, the option is ____.
4. If the exercise price of a put is greater than the current price, the option is ____.
5. If the exercise price of a put is lower than the current price, the option is ____.

Of the following choices, identify which is false:

1. The owner of a put option has the right but not the obligation to sell the underlying asset.
2. Financial options contracts give the writer the right, but not the obligation to purchase or sell the underlying asset at the strike (fixed) price at some future date.
3. The owner of a call option has the right to buy the underlying asset
4. The holder of a stock option can choose to buy or sell a share of stock.

T/F: The market price of the option is also called the exercise price.

Options are also known as derivatives because they derive their value from the price of another asset.

Does the writer of a call option have the right or the obligation to buy or sell the security for a given price?