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Investment analysis The Financial Advisor's Investment Case A Speculator's Choices Gosima Wagner is an optimist who likes to specu: Options on the sock are alup

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The Financial Advisor's Investment Case A Speculator's Choices Gosima Wagner is an optimist who likes to specu: Options on the sock are alup aceively traded. late. She enjoys watchins prices change rapidly and Currently, the following options and their price betieves that she could make large profits by fudi ciously taking advastage of price swings. Thus, it is easy to see why she is artracted to optiods whose prices may change rapidly from day to day, She especially likes the securitics associated with Fasolt Targe building and engineering firm that also has large building and enginecting firm that also has considerable holdings of coal and oil reserves. have reduced profit margins so that per-share earn- 2. What is the value of the bead in terms of the ings have plummeted from $5.50 to $1.00 during the latestfiscalyear.Thestock,whichatonerimehadbeenanoutstandingperformer,hasdeclinedfromastock?3.Whatistheintrimsicvalueofeachoption? The Financial Advisor's Investment Case A Speculator's Choices Gosima Wagner is an optimist who likes to specu: Options on the sock are alup aceively traded. late. She enjoys watchins prices change rapidly and Currently, the following options and their price betieves that she could make large profits by fudi ciously taking advastage of price swings. Thus, it is easy to see why she is artracted to optiods whose prices may change rapidly from day to day, She especially likes the securitics associated with Fasolt Targe building and engineering firm that also has large building and enginecting firm that also has considerable holdings of coal and oil reserves. have reduced profit margins so that per-share earn- 2. What is the value of the bead in terms of the ings have plummeted from $5.50 to $1.00 during the latestfiscalyear.Thestock,whichatonerimehadbeenanoutstandingperformer,hasdeclinedfromastock?3.Whatistheintrimsicvalueofeachoption

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