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 call gives its holder the right to buy and its writer the obligation to sell a specified quantity of the underlying asset at a specified price. If you expect higher prices, would you rather buy or sell the underlying?