Suppose a 3-month Tesla stock call option with a strike price of $1050 is $100 per share. If you BUY one contract of the option, calculate your rate of return if the price of Tesla shares will either be: $1000, $1150, or $1200 after 3 months. 

Explain at least two advantages and two disadvantages for option investments.

Answer rating: 100% (QA)

If the price of Tesla shares is 1000 after 3 months the option will expire worthless and you will lo... View the full answer