Question
There are two investment options below. Investment Alternative 1: John buys shares of ATT of 52$ for long position for call option and also, he
- There are two investment options below.
Investment Alternative 1: John buys shares of ATT of 52$ for long position for call option and also, he buys shares of BBT of 60$ for short position for call option. He buys BBT short position for 3$. Calculate daily profit/loss for hare of ATT.
Day | 1. | 2. | 3. | 4. | 5. | 6. |
Price ($) | 45 | 48 | 51 | 55 | 62 | 65 |
Investment Alternative 2: Betty buys shares of CCT of 45$ for long position for call option and also, she buys shares of CCT of 49$ for short position for call option. She buys CCT short position for 4$. Calculate daily profit/loss for hare of CCT.
Day | 1. | 2. | 3. | 4. | 5. | 6. |
Price ($) | 45 | 50 | 53 | 55 | 65 | 68 |
Do you think, which of the two different investments more profitable end of the sixth day? Why?
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