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MGT613 - Production / Operations Management

Question(s) similar to the following:

Describe why an investor might purchase a call.

Question 1: Describe why an investor might purchase a call.

Answer: Suggest Edit

A call option gives the holder the right to buy (or "call away") 100 shares of a particular common stock at a specified price any time prior to a specified expiration date. Investors purchase calls if they expect the stock price to rise, because (lie price of the call and the common stock will move together. Therefore, calls permit investors to speculate on a rise in the price of the underlying common stock without buying the stock itself.

Similar Questions:

Question 2: Describe why an investor might purchase a call.

Answer: Suggest Edit

A call option gives the holder the right to buy (or "call away") 100 shares of a particular common stock at a specified price any time prior to a specified expiration date. Investors purchase calls if they expect the stock price to rise, because (lie price of the call and the common stock will move together. Therefore, calls permit investors to speculate on a rise in the price of the underlying common stock without buying the stock itself.
Past Papers of MGT613 - Production / Operations Management
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