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Suppose that it is October and a speculator considers that Amazon is likely to increase in value over the next two months. The stock price

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Suppose that it is October and a speculator considers that Amazon is likely to increase in value over the next two months. The stock price is currently $20, and a two-month call option with a $21 strike price is currently selling for $0.50 per share (in the US, an option contract is a contract to buy or sell 100 shares). If the speculator is willing to invest $2,000, which of the following strategies is the most profitable if the speculator's hunch is correct and Amazon's stock price is $22 in the next two months? Sell 40 put option contracts. Sell 100 Amazon shares. Suppose that it is October and a speculator considers that Amazon is likely to increase in value over the next two months. The stock price is currently $20, and a two-month call option with a $21 strike price is currently selling for $0.50 per share (in the US, an option contract is a contract to buy or sell 100 shares). If the speculator is willing to invest $2,000, which of the following strategies is the most profitable if the speculator's hunch is correct and Amazon's stock price is $22 in the next two months? Sell 40 put option contracts. Sell 100 Amazon shares

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