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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
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 $28.50 is $1. What are the alternative strategies? ______________________________
For the second alternative (i.e., the one using options) to give a better outcome at the option maturity, the stock price must be above $ __________.
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