A client is looking to buy a European call option on a stock instead of buying...

 

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A client is looking to buy a European call option on a stock instead of buying the stock outright. The make a profit? Under what circumstances will the option be exercised? Assume now that the client use graphs as well as discussion. (max 500 words) (max 6p) A client is looking to buy a European call option on a stock instead of buying the stock outright. The make a profit? Under what circumstances will the option be exercised? Assume now that the client use graphs as well as discussion. (max 500 words) (max 6p)

Answer rating: 100% (QA)

To analyze whether buying a European call option on a stock can lead to a profit lets first understand what a European call option is and how it works ... View the full answer