标签：__________________ sell option would purchase price Option stock

If you thought prices of stock would be rising over the next few months, you might want to __________________ on the stock.

Call Option: This is an option to purchase a share at specified fixed price in future but there is no obligation to purchase the share. So this is depend on the trader of the optio is profitable then only he can exercise the option otherwise he can leave the option.

Put Option: This is an opposite of the call option, In this case there is option to sell a shares in future at predetermined price but there is no obligation to sell the shares. So this is also exercised only when the market price will fall with compare to exercise price.

Future Contract are those contract which are incurred in future at specified rate and specified date.

Sell order means sell a stock but when we can expect to the fall in price but in the given case the expected price is rising so this option is not correct.

So As per the above,

In Call option we have the option to sell in future if the price is increase so we can purchase a call option.

Answer = Option 1 = Purchase a Call Option

标签：__________________,sell,option,would,purchase,price,Option,stock
来源： https://www.cnblogs.com/coursehero/p/16057739.html

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