Question

One of your clients owns a large block of XYZ Corporation common stock. The investor calls and wants to buy a call option for XYZ Corporation common stock. Why would this investor choose to buy a call on XYZ common stock?

Answer 1

The correct option is D The investor wants to ensure a set price on XYZ Corporation common stock in the event that they want to buy more shares.

Explanation:

Based on the information given the reason why

this investor would choose to buy a call on XYZ common stock is that the investor want to know the actual or fixed price of XYZ Corporation common stock just in case they want to buy more shares .

Secondly in a situation where the investor buy a call option on stock it will enables the investor to buy at the fixed price for a particular period of time.