Juan is considering the following alternatives for investing in MM Industries: Buy 500shares Buy six month call options with: exercise price of $40 for a premium of a $6.00 The selling price per share now $46 Assume no commissions o taxes (ideal world) Assume in 4months the stock reaches $48 and a call was purchased What is the annualized percentage gain?

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Investing in MM Industries Stock vs Call Options Heres a breakdown of both options and their potenti... View the full answer