If the underlying currency is expected to appreciate:
A) a speculator will go long a call option or long a put option
B) a speculator will go long a call option or short a put option
C) a speculator will go short a call option or long a put option
D) a speculator will go short a call option or short a put option

Question

Quizplus · Accepted Answer

If the underlying currency is expected to appreciate, a speculator would likely go long a call option to benefit from the currency's rise or short a put option, betting that the option will expire worthless as the currency value increases, thus not being exercised by the buyer.

If the Underlying Currency Is Expected to Appreciate