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Your analysis of the banking sector has led you to the belief that the price of CBA shares is going to rise over the next
Your analysis of the banking sector has led you to the belief that the price of CBA shares is going to rise over the next 12 months. Explain what trades you could make to take try and profit from this view using
- the underlying share,
- an option on that share, or
- a futures contract on that share.
Discuss the relative differences in risk and return you would face from each of these.
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