Leverage can boost your profit or losses. Debt can give you leverage, also options can do that as well. From your corporate finance course you may recall that debt gives corporations leverage. Options also can give investors leverage. Explain how that works. Consider a stocks that is $20 and you buy a call option with exercise price of also $20. The premium for that call price is $1. Discuss how this option gives investor leverage if stock at maturity ends up at $22.