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You Believe the Price of an Asset Is Going to Increase

Question 33

Multiple Choice

You believe the price of an asset is going to increase within the next three months. Which one of the following payoff profiles for an option on that asset will reflect a profit if your belief is correct?


A) Buying a put
B) Selling a call
C) Buying a call
D) Selling a put
E) Selling both a call and a put

Correct Answer:

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