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1. A. Buying a call means that the investor expects that the market price of the asset would increase in future. It gives the investor the right, not the obligation, to buy the asset at a predetermined price on a predetermined date.
B. If I bought a call and the market price of the asset increases above the strike price of the call, there would be profit. As an example, if I buy a call option to buy shares of IBM at $25 per share...
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