Chapter 02 · Section 2.1

Price Rise- Call

FUTURES & FORWARDS CALL OPTIONS PUT OPTIONS If you expect a fall in price SHORT SHORT ..... (Bearish)

If you expect a rise in price LONG LONG ..... (Bullish)

With a call, if you expect the price of the underlying asset to rise, you:

a) take a short position.
No. If you are short a call and the price increases, the market is going against your position and you are exposed to unlimited losses unless you are covered by the underlying asset.
b) take a long position.