Question
Suppose you believe GoPro stock is going to appreciate substantially in the next year. The stock currently trades at $90/share. You have $9000 to invest
Suppose you believe GoPro stock is going to appreciate substantially in the next year. The stock currently trades at $90/share.
You have $9000 to invest and are considering 2 strategies.
1.Invest all your money in stock
2.Invest all your money in at-the-money call options (each option costs $10)
What will the return be for each strategy if the stock ends the year at:
$85
$110
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Financial Management Principles And Practices
Authors: Timothy J. Gallagher
9th Edition
1954156103, 978-1954156104
