You are very bullish (optimistic) on stock EFG, much more so than the rest of the market.

Question:

In each question, choose the portfolio strategy that will give you the biggest dollar profit if your bullish forecast turns out to be correct. Explain your answer.

a. Choice A: $10,000 invested in EFG calls with X = 50.

Choice B: $10,000 invested in EFG stock.

b. Choice A: 10 EFG call option contracts (for 100 shares each), with X = 50.

Choice B: 1,000 shares of EFG stock. p-69

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ISE Investments

ISBN: 9781266085963

13th International Edition

Authors: Zvi Bodie, Alex Kane, Alan Marcus

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Question Posted: Jul 31, 2024 05:01 AM

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You are very bullish (optimistic) on stock EFG, much more so than the rest of the market.

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ISE Investments

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