investor who buys the Call Option will be bullish in nature and would be expecting the market to give decent
returns in the near future.
- Risk: The risk of the buyer is the amount paid by him to buy the Call Option i.e. the premium value.
- Reward: The reward will be unlimited as the underlying asset value can rise up to any value until the expiry.
- Break-Even Point: The break-even point for the Call Option Holder will be ‘Strike Price + Premium.’
- Buy 1 Call Option