The buyer of a call option benefits if the price of the underlying is unchanged or falls.

Question

Quizplus · Accepted Answer

The buyer of a call option benefits if the price of the underlying asset increases. This allows them to buy the asset at a lower price and sell it for a higher price, or simply sell the option for a profit. If the price of the underlying asset falls or remains unchanged, the buyer of the call option will not benefit and may even experience a loss if the cost of the option exceeds any potential gains from exercising it.

The Buyer of a Call Option Benefits If the Price