Question
Please help me indicate the formula in EXCEL, thank you! I need to show the process. Can you show the calculation process in EXCEL? Youve
Please help me indicate the formula in EXCEL, thank you!
I need to show the process. Can you show the calculation process in EXCEL?
Youve decided to add 100 shares of ABC Corp. to your portfolio. ABC stock is currently trading at $50 a share. As an alternative, youre considering buying 1,000 call options on ABC. Each option has an exercise price of $50 and expires in 3 months. The options cost $5 each
Compare the two strategies by filling in the table and graph the percentage profit of each strategy against the stock price at expiration (St).
Which Strategy is riskier?
Investment today from buying 100 shares Investment today from buying 1,000 call options 5,000.005,000.00 \begin{tabular}{c|c|c|c|c} ABC stock price in 3 & Dollar profit from \\ months, ST & buying 100 shares & Dollar profit from buying 1,000 call options now & Percentage profit from buying 100 shares & Percentage profit from buying 1,000 call options now \end{tabular}Step by Step Solution
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