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1) The current price of a stock is $78. A three-month call option with a strike price of $81 currently sells for $3.90. An investor

1) The current price of a stock is $78. A three-month call option with a strike price of $81 currently sells for $3.90. An investor who feels that the price of the stock will increase is trying to decide between two strategies: Buying 10 shares or buying 200 call options. How high does the stock price have to rise for the option strategy to be more profitable?

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