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Show calculation and discussion Thank you Problem 6: Rick is considering the following alternatives for investing in D Industries, which is now selling for $44
Show calculation and discussion Thank you
Problem 6: Rick is considering the following alternatives for investing in D Industries, which is now selling for $44 per share: (1) (2) Buy 500 shares, and Buy six-month call options with an exercise price of 45 for $3.25 premium. a. Assuming no commissions or taxes, what is the annualized percentage gain if the stock reaches $50 in four months and a call was purchased? b. Assuming no commissions or taxes, what is the annualized percentage gain if the stock is at $30 in four months and the stock was purchasedStep by Step Solution
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