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Landorf companys stock has intrinsic value of $ 260. Their stock trades for $ 245.80. It has a dividend yield of 2.75 %. You have
Landorf companys stock has intrinsic value of $ 260. Their stock trades for $ 245.80. It has a dividend yield of 2.75 %. You have access to a margin of 30 % at an annual cost of borrowing of 10.5 %. Or, you can purchase a call option expiring in one year, with exercise price: $2 42.50, & premium of: $ 14.80. Find total return of purchasing Landorf stock normally, purchasing it on margin, and purchasing a call option & record the greatest results after a holding period of one year.
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