Question
a) You are bullish on a particular security and have $500 to invest. The stock is trading for $100. Call options with a strike price
a) You are bullish on a particular security and have $500 to invest. The stock is trading for $100. Call options with a strike price of $100 are trading for $1.00.You decide to invest your entire $500 by purchasing call options.After 1 month the stock price goes downto$85and you liquidateliquidate your position? What was your profit?
b)You are bullish on a particular security and have $500 to invest. The stock is trading for $100. Call options with a strike price of $100 are trading for $1.00.You decide to invest your entire $500 by purchasing call options.After 1 month the stock price goes downto$85and you liquidateliquidate your position? What was yourHolding Period Return?
c)You are bullish on a particular security and have $500 to invest. The stock is trading for $100. Call options with a strike price of $100 are trading for $1.00.You decide to invest your entire $500 by purchasing call options.After 1 month the stock price goes up to$101and you liquidateliquidate your position? What was your profit?
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Design And Analysis Of Experiments
Authors: Douglas C., Montgomery
5th Edition
978-0471316497, 0471316490
