Investors Buy Call Options Because They Expect the Price of the Underlying

question 64

True/False

Investors buy call options because they expect the price of the underlying stock to increase before the expiration of the option.

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Definitions:

Emotional States

Various types of feelings that influence behavior, including happiness, anger, sadness, and fear.

Perceived Ability

An individual's belief about how well they can perform or succeed in a particular task or activity.

Coping with Stress

Coping with stress involves employing strategies or behaviors to manage or reduce the psychological strain caused by stressors.

Alcohol

A psychoactive substance that is commonly consumed in beverages and can affect the central nervous system, leading to altered mood, behavior, and cognitive functions.