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A good friend has given you 10,000 shares of BOC stock worth $50 per share. Your friend (a very knowledgeable investor) tells you that you
A good friend has given you 10,000 shares of BOC stock worth $50 per share. Your friend (a very knowledgeable investor) tells you that you should hold the stock for another six months and then sell. You do not want to bear the price risk, but you do not want to insult your friend. How can you solve your problem with options? You expect to get a $25,000 end of year bonus from your employer. You want to use that money to buy YNT stock later, but you also think that YNT stock will make an upward price move before then. How can you solve your problem with options? X You are a speculator who thinks that the price of ELO stock will increase significantly in the near future. What option position should you take in order to maximize your possible gain? You are a speculator who thinks that the price of OMD stock will decrease significantly in the near future. Wh option position should you take in order to maximize your possible gain?
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