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A call option has an exercise price of $100. At the final exercise date, the stock price could be either $50 or $150. Which investment
A call option has an exercise price of $100. At the final exercise date, the stock price could be either $50 or $150. Which investment would combine to give the same payoff as the stock?
PLEASE EXPLAIN, please explain
A. Lend PV of $50 and buy two calls B. Borrow $50 and sell two calls C. Borrow $50 and buy two calls D. Lend PV of $50 and sell two calls
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