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18. Company ABC's stock is currently trading at $22 and is forecast to either increase by 20% or fail by 15% in 3 months. The

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18. Company ABC's stock is currently trading at $22 and is forecast to either increase by 20% or fail by 15% in 3 months. The 3-month interest rate is 1.5%. Assuming there is no active options market, an investor wishing to buy a call option on ABC stock with an exercise price of $20 will: a. Long 0.831 units ofABC stock and lend $15.54 4,! of a" ' b. Long 0.831 units of ABC stock and borrow $15.31 A ; mpg (1. Long 1.203 units ofABC stock and lend $15.31 P d. Long 1.203 units of ABC stock and borrow $15.54 e Noneoftheabove r 0 7 0 ggl 26-11 : W 6 / '5'\") Eomv"j: QRINSV \"$ch 18 H"? ' ' r

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