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:

b) take a long position.
Yes. If you are long a call, you can buy the underlying asset at the exercise price and then sell it on the market at a higher price. The marke is going with your position and you may profit substantially. Continue