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please show work for each problem for business calculator. ex. rate, N, PMT,PV,FV 7 Is is January 1 and Bobitronics Inc. (BOB) stock is currently
please show work for each problem for business calculator. ex. rate, N, PMT,PV,FV
7 Is is January 1 and Bobitronics Inc. (BOB) stock is currently trading at $99.91. There is a May call option on BOB's stock with a strike price of 110. The option is currently trading at $3.10. Assume that the stock increases in value to $115.14 shortly before expiration. Calculate the percentage rate of return under the following 2 scenarios: a) You buy the stock today at $99.91 and then sell it at $115.14, and b) you buy the May 110 call contract at $3.10, exercise the option, and then sell the stock for $115.14. Assume that you can exercise and sell the stock simulataneously with no transactions costsStep by Step Solution
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