Question

A option is an option to purchase a specified number of shares of a stock on or before some future date at a specified price, whereas a option is an option to sell a specified number of shares of a stock on or before some future date at a specified price. are purchased if the stock price is expected to fall. a. call: put; Calls b. put; call; Puts c. put; call; Calls d. call; put; Puts

Answer 1

d. Call; Put; Puts

Step-by-step explanation:

A call option is a financial agreement that gives the authority to buy a particular asset at a particular price in a specified time period. If an investor thinks that the price of a stock will go up they will exercise the call option to buy the stock at the agreed lower price when the market price is higher and thus make a profit out of the transaction.

A put option is a financial agreement that gives the right to investor to sell the stock at a higher price in case the price of the stock falls in a specific limit of time. This again allows investors to make profits when and if the put is exercised in case of fallen stock price.

Hope that helps.