Question
Suppose a 3-month Tesla stock call option with a strike price of $1050 is $100 per share. If you BUY one contract of the option,
Suppose a 3-month Tesla stock call option with a strike price of $1050 is $100 per share. If you BUY one contract of the option, calculate your rate of return if the price of Tesla shares will either be: $1000, $1150, or $1200 after 3 months.
Explain at least two advantages and two disadvantages for option investments.
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Fundamentals of Corporate Finance
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