If you thought prices of share would be rising over the next few months you may wish to ________ on the share.
A)purchase a call option
B)purchase a put option
C)sell a futures contract
D)place a short sale order

Question

Quizplus · Accepted Answer

If you think the price of a share will rise, you would want to purchase a call option, which gives you the right to buy the share at a fixed price in the future. This allows you to potentially profit from the price increase without having to actually purchase the share upfront. The other options (B, C, and D) are not applicable if you believe the price will rise.

If You Thought Prices of Share Would Be Rising Over