Q582
Consider buying call option, if price of stock rises then buyer of call option has
A.
low potential of losses
B.
high potential of losses
C.
high potential of profit
AnswerD.
low potential of profit
Answer: Option C
Solution
Answer: Option C
Solution:
Consider buying call option, if price of stock rises then buyer of call option has high potential of profit. Call options are financial contracts that give the option buyer the right, but not the obligation, to buy a stock, bond, commodity or other asset or instrument at a specified price within a specific time period. The stock, bond, or commodity is called the underlying asset.