Question: Speculate that ABC stock will increase in value in the next 2 months. The current stock price is 20. A 2 month call option with

Speculate that ABC stock will increase in value in the next 2 months. The

current stock price is 20. A 2 month call option with K = 22.50 is selling for

$1. Is it better to buy 100 shares or 2000 call options. Case a) Dec price is

27, b) Dec price is 15.

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