subject
Business, 17.12.2019 21:31 ayowazzzgood

The current price of a stock is $94, and three-month call options with a strike price of $95currently sell for $4.70. an investor who feels that the price of the stock will increase is trying to decide between buying 100 shares and buying 2,000 call options (20 contracts). both strategies involve an investment of $9,400. what advice would you give? how high does the stock price have to rise for the option strategy to be more profitable?

ansver
Answers: 2

Another question on Business

question
Business, 22.06.2019 02:00
Corporations with suppliers, vendors, and customers all over the globe are referred to as : a) global corporations b) international corporations c) multinational corporations d) multicultural corporations
Answers: 2
question
Business, 23.06.2019 00:00
Wo firms, a and b, each currently dump 50 tons of chemicals into the local river. the government has decided to reduce the pollution and from now on will require a pollution permit for each ton of pollution dumped into the river. it costs firm a $100 for each ton of pollution that it eliminates before it reaches the river, and it costs firm b $50 for each ton of pollution that it eliminates before it reaches the river. the government gives each firm 20 pollution permits. government officials are not sure whether to allow the firms to buy or sell the pollution permits to each other. what is the total cost of reducing pollution if firms are not allowed to buy and sell pollution permits from each other? what is the total cost of reducing pollution if the firms are allowed to buy and sell permits from each other? a. $3,000; $1,500 b. $4,500; $3,500 c. $4,500; $4,000 d. $4,500; $2,500
Answers: 3
question
Business, 23.06.2019 05:30
What type of stock does a large company issue?
Answers: 3
question
Business, 23.06.2019 09:40
What is an example of a functional organizational structure?
Answers: 1
You know the right answer?
The current price of a stock is $94, and three-month call options with a strike price of $95currentl...
Questions
question
English, 08.07.2019 05:00
question
Chemistry, 08.07.2019 05:00
question
Mathematics, 08.07.2019 05:00
Questions on the website: 13722367