A customer believes that ABC's price will go up but does not have the money to buy 100 shares right now. How could the customer use options to profit from an increase in the stock's price?

A customer believes that ABC's price will go up but does not have the money to buy 100 shares right now. How could the customer use options to profit from an increase in the stock's price?

A customer believes that ABC's price will go up but does not have the money to buy 100 shares right now. How could the customer use options to profit from an increase in the stock's price?


Buy calls.

Write calls.

Buy puts.

Write puts.


A) II or III.

B) II or IV.

C) I or IV.

D) I or III.



Answer: C) I or IV.


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