Question
Suppose you have $30,000 to invest. Youre considering Miller-Moore Equine Enterprises (MMEE), which is currently selling for $51 per share. You also notice that a
Suppose you have $30,000 to invest. Youre considering Miller-Moore Equine Enterprises (MMEE), which is currently selling for $51 per share. You also notice that a call option with a $51 strike price and 8 months to maturity is available. The premium is $4. MMEE pays no dividends. What is your annualized percentage return if you invest in options if, in 8 months, MMEE is selling for $64 per share?
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Fundamentals of Investments
Authors: Gordon J. Alexander, William F. Sharpe, Jeffery V. Bailey
3rd edition
132926172, 978-0132926171
