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This question illustrates the leverage benefit of using options. A. An investor has $1 million to invest. How many shares of stock can they purchase,
This question illustrates the leverage benefit of using options. A. An investor has $1 million to invest. How many shares of stock can they purchase, and what is the profit if the spot share price moves from $100 to $337.50? B. Alternatively, the investor uses the $1 million to buy call options at the premium shown above. How many calls can they purchase, and what is the profit if the spot share price moves from $100 to $337.50
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