Question
An investor owns 1,000 IBM shares currently worth $140 per share. They do not think the price can rise above $150 over the next six
An investor owns 1,000 IBM shares currently worth $140 per share. They do not think the price can rise above $150 over the next six months. What can the investor do to enhance their return ?
| A. |
Sell a call on the stock struck at $150
| |
| B. | Buy a call on the stock struck at $145
| |
| C. | None of the choices | |
| D. | Buy a put on the stock struck at $150 |
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Python For Finance
Authors: Yves Hilpisch
2nd Edition
1492024333, 978-1492024330
