Chapter 06 · Section 6.1
Profit Potential
Buy Calls Market Outlook : BULLISH Profit Potential : Loss Potential : Breakeven Point :The investor's profit potential is:
a) unlimited.
b) limited.
A call option buyer pays a premium for the right to choose whether to buy the underlying. If the price of the underlying continues to rise after the trader has purchased a call, the trader's unrealized profit will continue to increase.