Question: Formulas R = (SP-INV - Loan + D) / INV: R = Profit / Investment Investor A buys 100 shares of IBM at $100/share, while
Formulas R = (SP-INV - Loan + D) / INV: R = Profit / Investment Investor A buys 100 shares of IBM at $100/share, while investor B buys 1 IBM call contract (exercise price $100) expiring in two months at $5/share, or $500/contract. If the price of IBM stock rises to $130/share by expiration day for the call the investor AS return on investment will be and investor B's return on investment will be
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