Question
Call buying is the simplest form of investment in option market, therefore is the most frequently used option strategy by the public investors. The
Call buying is the simplest form of investment in option market, therefore is the most frequently used option "strategy" by the public investors. The success of a call buying depends primarily on one's ability to select stocks that will go up by time of option expiration. Question A1 (Motivation for Call Buying). Provide and elaborate at least two dif- ferent scenarios in which call buying is appropriate. (Words limit: 400; 15 Marks)
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