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A stock sells for $30 and a 6-month call on the stock with a $30 strike trades for $5. If the stock goes to $40,
A stock sells for $30 and a 6-month call on the stock with a $30 strike trades for $5. If the stock goes to $40, which of the following is true:
a. Spending $30 to buy 1 share of stock offers the greatest percentage return on investment
b. Spending $30 to buy 6 call options offers the greatest percentage return on investment
c. Buying the 1 share of stock for $30 has the same percentage return as buying 6 call options for $30
d. Writing 6 call optionsoffers a risk-free return
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