Call options are purchased with the expectation that the market price of the underlying security will fall while put options are purchased with the expectation that the market price of the underlying security will rise.

Question

Quizplus · Accepted Answer

The statements in the question are incorrect. Call options are purchased with the expectation that the market price of the underlying security will rise, while put options are purchased with the expectation that the market price of the underlying security will fall.

Call Options Are Purchased with the Expectation That the Market