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The curent price of a stock is $ 1 0 5 , and three - month European call options with a strike price $ 1

The curent price of a stock is $105, and three-month European call options with a strike price $107 currently sell for $5.20. An investor who feels that the price of the stock will increase is trying to decide between buying 100 shares and buying 1500 call options. Both strategies involve an investment of $10500. If the share price increases to $120, the gain to the investor if he bought call options will be $---. If the share price increases to $120, the gain to the investor if he bought shares will be $----. It is therefore advisable for the investor to but ---- to benefit from an increase in share price. For both the strategies to be equally profitable the stock price should increase to $----.

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