The purchaser of a call option feels that the stock will
A) pay a large dividend.
B) maintain a level price.
C) have a drop in price.
D) have a price rise.

Question

Quizplus · Accepted Answer

The purchaser of a call option believes that the underlying stock's price will rise, which will allow them to exercise the option and purchase the stock for a profit. If the stock's price stays the same or falls, the option will not be profitable.

The Purchaser of a Call Option Feels That the Stock