An investor who is long XYZ stock would consider going long an XYZ call to:

An investor who is long XYZ stock would consider going long an XYZ call to:


A) hedge the long position.

B) obtain income from the premium.

C) protect against an increase in the market price of XYZ stock.

D) protect against a decrease in the market price of XYZ stock.



Answer: C) protect against an increase in the market price of XYZ stock.


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