Question
IBM was trading at $100 when Mrs. Peterson bought a 100 call on IBM at a price of $14. Three months later, IBM common stock
IBM was trading at $100 when Mrs. Peterson bought a 100 call on IBM at a price of $14. Three months later, IBM common stock was trading at $130, and the call option was trading at $40. The leverage factor for this situation would be: (Report a number and keep 2 decimal places. e.g. report 1.15 instead of 115%.)
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Practical Business Statistics
Authors: Andrew Siegel
6th Edition
0123852080, 978-0123852083
