You would like to speculate on a rise in the price of a certain stock. The current stock
Chapter 1, Problem 1.9(choose chapter or problem)
You would like to speculate on a rise in the price of a certain stock. The current stock price is $29 and a 3-month call with a strike price of $30 costs $2.90. You have $5,800 to invest. Identify two alternative investment strategies, one in the stock and the other in an option on the stock. What are the potential gains and losses from each?
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