1.7. When first issued a stock provides funds for a company is the same true of a stock option? Discuss 1.8. Explain why a futures contract can be used for either speculation or hedging 1.9. Suppose that a March call option to buy a share for $50 costs $2.50 and is held until March Under what circumstances will the holder of the option make a profit? Under what circumstances will the option be exercised? Draw a diagram illustrating how the profit from a long position in the option depends on the stock price at maturity of the option