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Business, 18.11.2019 21:31 DivineMemes420

Suppose you think appx stock is going to appreciate substantially in value in the next year. say the stock’s current price, s0, is $100, and the call option expiring in one year has an exercise price, x, of $100 and is selling at a price, c, of $10. with $10,000 to invest, you are considering three alternatives: invest all $10,000 in the stock, buying 100 shares. invest all $10,000 in 1,000 options (10 contracts). buy 100 options (one contract) for $1,000 and invest the remaining $9,000 in a money market fund paying 4% interest annually. a. calculate the value of the investment for stock price one year from now? (leave no cells blank - be certain to enter "0" wherever required.)

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Suppose you think appx stock is going to appreciate substantially in value in the next year. say the...
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