1. The options market allows investors to speculate on the price movement of the underlying security. If the investor thought a security was going to go up in the future they would which of the following?
Buy a put option on the underlying security
Write a call option on the underlying security and pocket the profit
Sell a put option on the underlying security and pocket the profit
Buy a call option on the underlying security
2. Suppose you expect the value of a stock to increase over the next four months. Assuming you would like to take advantage of this price change, you would either __________ a call option or __________ a put option.
buy; buy
buy; write
write; buy
write; write