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A stock is trading at $50 per share. Now assume you believe the following predictions of stock price after 3 month: An at-the-money 3-month call
A stock is trading at $50 per share. Now assume you believe the following predictions of stock price after 3 month: An at-the-money 3-month call (equaling 100 shares of stocks) is available at a cost of $1000 per contract. What is the expected dollar profit and expected return for a buyer of this call at the end of 3 months
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