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.

---

Definitions:

Milestones

Significant points in development or events marking important stages or achievements in a process.

Dominant Gene

A gene that expresses its phenotype over another gene, the recessive gene, when they are both present in a pair of alleles.

Recessive Gene

A gene that produces its characteristic phenotype only when its allele is identical, otherwise being masked by the effects of a dominant gene.

Temperament

An individual's innate disposition or behavioral style and characteristic emotional response.