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You are evaluating a stock that is currently selling for R30 per share. Over the investment period you think that the stock price might get
You are evaluating a stock that is currently selling for R30 per share. Over the investment period you think that the stock price might get as low as R25 or as high as R40. There is a call option available on the stock with an exercise price of R35.
A) how much would you borrow to purchase the stock?
B) what is the amount of your initial investment in the stock?
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