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You have $20,000 to spend on one investment and you have two choices. The first is to spend all of your money on a call
You have $20,000 to spend on one investment and you have two choices. The first is to spend all of your money on a call option for ScoobyDoo Dog Treats Co. and the second is to buy the stock which is currently trading at $50 per share. The two month call option costs $8 per share with a strike price of $53. At the end of the two months shares of Scooby Doo are trading at $64 per share. Which of these two decisions turned out to be the best one and what is your profit or loss? X Multiple Choice #3 H cmd E D Buying the option with a $5600 profit Buying the option with a $7500 profit Buying the option with a $9000 profit Buying the stock with a $4400 profit $ 4 C Q R F % 5 t V < Prev T A 6 II 35 of 36 Y B & 7 G H www 11-1 Next > N 8 D M ( 9 K H 0 cmd P alt { option
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