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A speculator can choose between buying 100 shares of a stock for $40 per share and buying 400 European call options (i.e., covering 400 shares)
A speculator can choose between buying 100 shares of a stock for $40 per share and buying 400 European call options (i.e., covering 400 shares) with a strike price of $45 for $7 per option. For the second alternative to give a better outcome at the option maturity, the stock price must be above $60 a. O b. $55 $56 C. O d. $45
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