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An investor with $2,000 to invest feels that a stock price will increase over the next 2 months. The current stock price is $20 and

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An investor with $2,000 to invest feels that a stock price will increase over the next 2 months. The current stock price is $20 and the price of a 2-month call option with a strike of 22.50 is $1. Suppose that the speculator's hunch is correct and the price of the stock rises to $28 by December. If the investor purchase 100 shares of the stock. What is the profit of this strategy? $2000 $600 $9000 $800 An investor with $2,000 to invest feels that a stock price will increase over the next 2 months. The current stock price is $20 and the price of a 2-month call option with a strike of 22.50 is $1. Suppose that the speculator's hunch is correct and the price of the stock rises to $28 by December. The investor purchases of 2,000 call options (i.e., 20 call option contracts). What is the profit of this strategy? $800 $9000 $600 $2000 An investor with $2,000 to invest feels that a stock price will increase over the next 2 months. The current stock price is $20 and the price of a 2-month call option with a strike of 22.50 is $1. Suppose the stock price falls to $14 by December. Suppose the investor purchases 100 shares of stock. What is the loss of this strategy? $800 $9000 $2000 $600 An investor with $2,000 to invest feels that a stock price will increase over the next months. The current stock price is $20 and the price of a 2-month call option with a strike of 22.50 is $1. Suppose the stock price falls to $14 by December. Suppose the investor purchases 2000 call options shares. What is the loss of this strategy? $9000 $2000 $800 $600

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