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:

Lobotomy Procedure

A medical procedure that entails cutting the connections in the prefrontal region of the brain, once commonly performed to manage mental disorders.

Egas Moniz

A Portuguese neurologist best known for pioneering the prefrontal lobotomy as a treatment for mental disorders, and awarded the Nobel Prize in Physiology or Medicine in 1949.

Mental Asylum

Historically, an institution providing care and treatment to individuals with mental illness, now more commonly referred to as psychiatric hospitals.

Egypt

A country in northeastern Africa known for its ancient civilization, pyramids, and the Nile River, with a rich historical and cultural heritage.