If you thought the share price of a stock was going to rise,would you be more likely to buy a call option or a put option?
A) a call option
B) a put option
C) a call option and a put option
D) There is not enough information given to answer this question.

Question

Quizplus · Accepted Answer

Call options give the holder the right to buy the underlying stock at a predetermined price (strike price) before the option's expiration. If the share price of the stock is expected to rise, it may be more profitable to buy a call option, as the investor can make a profit by buying the stock at the lower strike price and then selling it at a higher market price.

If You Thought the Share Price of a Stock Was