What is a primary feature of a call option?

A primary feature of a call option is that it grants the holder the right to purchase an asset at a predetermined price, known as the strike price, within a specific timeframe. This characteristic allows investors to benefit from price increases in the underlying asset. If the market price of the asset exceeds the strike price, the holder can buy at that lower price, potentially realizing a profit when selling the asset at the higher market price. This flexibility to buy at a known price is a key element that differentiates call options from other financial instruments, such as put options, which relate to selling assets.

The other options describe different aspects of financial instruments or options that do not align with the definition of a call option; thus, they do not reflect its primary feature. For instance, the first option refers to the rights associated with a put option, while the third mentions an obligation that does not apply to the nature of call options. The last option is irrelevant in the context of call options, focusing instead on a specific investment strategy involving foreign debt.