. (10 pts) Jim had $50,000 in his account. He invested in a stock trading at...
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. (10 pts) Jim had $50,000 in his account. He invested in a stock trading at $50.The at the money call option was trading at $4 at that time. How many times profit would he have earned if he would have invested in call option rather than stock? Assume that at expiry, the stock was trading at $80. (1) What is the profit in stock? (2) What is the profit in option? . (10 pts) Jim had $50,000 in his account. He invested in a stock trading at $50.The at the money call option was trading at $4 at that time. How many times profit would he have earned if he would have invested in call option rather than stock? Assume that at expiry, the stock was trading at $80. (1) What is the profit in stock? (2) What is the profit in option?
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Related Book For
Fundamentals Of Investing
ISBN: 9780135175217
14th Edition
Authors: Scott B. Smart, Lawrence J. Gitman, Michael D. Joehnk
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