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An investor buys a European call on a share for 3. The current stock price is 21 and the strike price is 18. The maturity
An investor buys a European call on a share for 3. The current stock price is 21 and the strike price is 18. The maturity of the option is in 3 months.
Briefly discuss the investors motivation for purchasing the call option.
Draw a diagram showing the investors potential profit/loss on this position at maturity.
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