Call Options
A call option gives the holder the right to:
Call = right to BUY (bullish). Put = right to SELL (bearish).
Complete Analysis & Legal Rationale
A call option gives the holder (buyer) the RIGHT to BUY the underlying asset at the strike price before expiration. The call buyer is bullish - expecting the price to rise.
Distractor Autopsy (Why Other Options Are Traps)
FINRA exam writers design incorrect distractors using specific calculation mistakes and regulatory misconceptions. Review why each option succeeds or fails:
The right to SELL at the strike price is a PUT option, not a call.
Matches the verified teaching point in the explanation.
Option holders have no right to dividends unless they exercise and own the stock.
Voting rights come with stock ownership, not option contracts.
Official Standard: Governs options accounts, approvals, and related supervisory requirements (verify current text).
Official Standard: Outline-level citation: item maps to Series 7 topic coverage. Prefer a specific FINRA/SEC/MSRB rule citation in a later author pass.