1)An investor is considering buying 700 shares of Vodafone company at 43 EGP per share.

Advisors predict that the stock price may increase to 52 EGP per share in the coming 3 months. To hedge this, the investor could purchase a 90-day call option at a strike price of 41 EGP for 7,500 EGP. 3

a)What profit/loss would the investor realize if the stock price increased to 50 EGP per share?

b)At what stock price would the investor break even?

c)The standard option contract is for: 1 share of stock, 50 shares of stock, 100 shares of stocks, or 1000 shares of stock