What is a put option what is a call, Financial Management

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What is a put option what is a call

Briefly answer the following questions:

a. What is a put option?

b. If you knew that a firm’s stock price would fall, how could you make money from purchasing put options? Explain.

c. What is a call option?

d. If you knew that a firm’s stock price would increase, how could you make money from purchasing call options? Explain.

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