You are moderately bullish on TEG stock. It is now trading at RM9.70. You think it...

 

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You are moderately bullish on TEG stock. It is now trading at RM9.70. You think it is likely to go up but not beyond RM10.50. You considered selling a put option on the stock but given your lack of confidence you don't want to expose yourself to the potential unlimited downside risk. The following call options are available: RM9.50 Call @ 0.15, RM10.50 Call @ 0.05 What would be an appropriate strategy? You are moderately bullish on TEG stock. It is now trading at RM9.70. You think it is likely to go up but not beyond RM10.50. You considered selling a put option on the stock but given your lack of confidence you don't want to expose yourself to the potential unlimited downside risk. The following call options are available: RM9.50 Call @ 0.15, RM10.50 Call @ 0.05 What would be an appropriate strategy?

Answer rating: 100% (QA)

Based on the given information an appropriate strategy would be to sell the RM950 Call option and bu... View the full answer