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Your ethically sourced research indicates a stock (CaronaMeds Co) is about to release amazing new drug trials which show both safety and efficacy of its

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Your ethically sourced research indicates a stock (CaronaMeds Co) is about to release amazing new drug trials which show both safety and efficacy of its new medical treatment for COVID 19. This will cause its stock price to jump from the last trade price of $2.50 to a much higher value, which you estimate to exceed $25 per share. The following instruments are available to you: Type Expiry Strike Price Stock $2.50 Call Dec'20 $2.50 $2.00 Call Dec'20 $10.00 $0.25 Put Dec 20 $2.50 $2.00 Put Dec'20 $0.50 $0.20 Which single instrument will give you the highest return on investment ? Long the Stock, as it has a delta of 1 which is higher than any option by definition Short the $0.50 Put, as it is the cheapest instrument Long the $10 Call, as it will be deep in the money and is cheap to buy Short the $2.5 Put, as gamma is maximum at the money Long the $2.5 Call, as gamma is maximum at the money

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