Question

Call options are the right to buy stock and put options are the right to sell stock, but both types of options can be either bought or sold

True or False?

Answer 1

Both call options and put options can be bought or sold.

Step-by-step explanation:

True

Both call options and put options can be bought or sold. Call options give the buyer the right to buy a stock at a specific price within a specified period of time. The buyer of a call option expects the stock price to increase, allowing them to buy the stock at a lower price and make a profit.

Put options give the buyer the right to sell a stock at a specific price within a specified period of time. The buyer of a put option expects the stock price to decrease, allowing them to sell the stock at a higher price and make a profit.