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

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25. You are very bullish (optimistic) on stock EFG, much more so than the rest of the market. 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 calls with X = 50.

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

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

Choice B: 1,000 shares of EFG stock.

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Investments

ISBN: 9780077261450

8th Edition

Authors: Zvi Bodie, Alex Kane, Alan J. Marcus

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