question archive An investor is currently observing the market price of Delta Company shares
An investor is currently observing the market price of Delta Company shares
Subject:FinancePrice:2.86 Bought5
An investor is currently observing the market price of Delta Company shares. Currently, the price per share is $200, and the investor expects a considerable increase in share price in near future. Hence, the investor would like to buy an option to make profit from the expected increase in share price. Would you recommend the investor to buy call or put options? Shall he/she buy an American or European Option and why?
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As investors consider the share price will increase in near future so the investor must purchase American call option to make profit from the expected increase in share price.Because American call option can be used to sell option in near future at any time which is not possible in case of European call option.
