You will earn a profit as the owner of a call option if the price of...

Question

Question

You will earn a profit as the owner of a call option if the price of the underlying asset:

		decreases.
		remains constant or decreases.
		remains constant.
		remains constant or increases.
		increases.

Answer 1

Answer #1

Correct answer is option E. Increases

So as the owner of a call option if the price of the underlying asset is increased on the specified date, owner can earn profits.

So that he will exercise his option and earn profit by reselling at higher price.

Answer 2

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