Question
Suppose you have an insider information that a certain stock price is going to increase for sure with a probability of 65%, assuming it is
Suppose you have an insider information that a certain stock price is going to increase for sure with a probability of 65%, assuming it is legal to trade on this information one of the best trading strategies would be to buy the stock on margins or buying a call while simultaneously holding the put. Is this statement True or False?
True
False
Cannot be determined with the information given
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Public Finance And Public Policy
Authors: Arye L. Hillman
2nd Edition
0521738059, 978-0521738057
