Answer:
a- long call / short stock.
b- short call / long stock.
Step-by-step explanation:
In trading and investment, a stock option can be defined as a contract that states that the buyer as the right to buy (call) or sell (put) an asset at a particular price at any time but necessarily obligational. Thus, it is strictly at the discretion of the buyer (investor).
Generally, in a long (buy) position, a buyer hopes that the price of stocks will rise because he or she will typically profit from a rise in price.
However, a short (buy) position, a buyer hopes that the price of stocks will fall because he or she will typically profit from a fall in price.
Hence, a long and short position are both on different sides of the market.
Therefore, the following choices are both the stock and options positions on different sides of the market;
a. Long call/short stock.
b. Short call/long stock.
However, a stock and options positions both on the same side of the market are;
a. Long call/long stock.
b. Long put/short stock.
In a nutshell, in a rising market long stock positions are profitable while in a falling or perhaps stable market short calls are profitable to investors.