Which of the Following Is True of an Option

Multiple Choice

Which of the following is true of an option?

A) It is based on market volatility and thus assures a high profit to risk preferring individuals.
B) It provides the holder the right (but does not obliges him/her) to buy or sell a certain quantity of an underlying asset before its expiration.
C) The greater the volatility of the underlier's price the less likely that the option will go "in the money" before it expires.
D) Options help individuals to minimize their business risks by transferring it to others for a fixed time interval.