Lucie wants to have the option to buy 1,000 shares of stock at a set price any time up to a given date. Lucie should purchase:
A) 10 calls.
B) 100 calls.
C) 1,000 calls.
D) 100 puts.
E) 1,000 puts.

Question

Quizplus · Accepted Answer

A call option gives the buyer the right to buy a stock at a set price. Lucie wants to have the option to buy 1,000 shares of stock at a set price, so she should purchase 10 calls.

Lucie Wants to Have the Option to Buy 1,000 Shares