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Which of the following statements is true? If you are extremely sure that the stock price is going to rise, then buying the stock is

Which of the following statements is true?

  1. If you are extremely sure that the stock price is going to rise, then buying the stock is the best strategy to exploit this view and make the most profit.

  2. If you are extremely sure that the stock price is going to rise, then buying a call option on the stock is the best strategy to exploit this view and make the most profit.

  3. If you are extremely sure that the stock price is going to rise, then buying a call option and selling a put option on the stock is the best strategy to exploit this view and make the most profit.

Select one:

a. i

b. ii

c. iii

d. All of the given strategies are equally good

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