You have a long call position on S&P500 Index ETF (SPY) with a strike price of...

  

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You have a long call position on S&P500 Index ETF (SPY) with a strike price of $450. The current price of SPY is $445. The option premium is $8 and the option matures in 9 months. You hold 10 contracts. Compared to owning 1,000 shares of SPY at $445, what is your leverage ratio with the option position? What is the break-even price? If SPY closes at $465 at the end of the option contract (assume that you do not close out your position before that), what is your return? How does it compare to owning the shares outright? You have a long call position on S&P500 Index ETF (SPY) with a strike price of $450. The current price of SPY is $445. The option premium is $8 and the option matures in 9 months. You hold 10 contracts. Compared to owning 1,000 shares of SPY at $445, what is your leverage ratio with the option position? What is the break-even price? If SPY closes at $465 at the end of the option contract (assume that you do not close out your position before that), what is your return? How does it compare to owning the shares outright?