Question
Pepsi Cola's stock is $140. You are having a big party and will buy all pepsi products and so believe the increase in sales will
Pepsi Cola's stock is $140. You are having a big party and will buy all pepsi products and so believe the increase in sales will make it's stock price rise.
If you are 100% sure the price will rise for the next 3 months, The BEST way to speculate given your view is:
| A. | Sell a $140 Pepsi Call | |
| B. | Buy a $150 Pepsi Put | |
| C. | Buy the stock | |
| D. | Buy a Coca Cola Call and sell a Pepsi call creating an arbitrage opportunity |
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Real Estate Finance And Investments
Authors: William Brueggeman, Jeffrey Fisher
13th Edition
0073524719, 9780073524719
