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$50 a share. As an alternative to buy Un margin from underlying asset and a call option) You've decided to add utes of ABC Corp.

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$50 a share. As an alternative to buy Un margin from underlying asset and a call option) You've decided to add utes of ABC Corp. to your portfolio. ABC stock is currently trading at mare. As an alternative to buying the shares now, you're considering buying 1,000 call options on ABC. Each option has an h option has an exercise price of $50 and expires in 3 months. The options cost $5 each. Compare the two strategies by filling in the table below and graphing! the percentage profits of each strategy against the stock prices, in 3 months. b. Which strategy is riskier? 5,000.00 50 100 Investment today from 1 buying 100 shares Investment today from buying 1,000 call 2 options 5,000.00 - 1000's ABC stock price in 3 Dollar profit from months, Sy b uying 100 shares Dollar profit from buying Percentage profit from 1,000 call options now buying 100 shares Percentage profit from buying 1,000 call options now

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