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A few days ago Claire purchased five ABC Dec 25 calls at a price of $2.50. ABC shares are now trading at $30, and she
A few days ago Claire purchased five ABC Dec 25 calls at a price of $2.50. ABC shares are now trading at $30, and she decides to exercise the options. What is the total cost of her shares? What is her total return if she sells the shares in the market right away? Explain why Claire would buy calls instead of just purchasing ABC shares?
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