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Author Question: An investor purchases a call option in a stock that is currently selling for $50 per share on ... (Read 41 times)

sarasara

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on: Apr 14, 2019

Question 1

Which of the following asset allocation strategies subjects you to relatively high risk and high return?


◦ 60% U.S. stocks, 30% real estate, 10% stocks in developing counties
◦ 20% large U.S. stocks, 20% small U.S. stocks, 40% bonds, 20% CDs
◦ 50% bonds, 25% CDs, 25% large U.S. stocks
◦ 25% large U.S. stocks, 25% CDs, 10% real estate, 40% bonds

Question 2

An investor purchases a call option in a stock that is currently selling for $50 per share on January 3, 2016. He pays $6 per share for the option with an exercise price of $57 and an expiration date of April 17, 2016. On April 16, 2016 the stock is selling for $58 and the investor exercises the option and immediately sells the stock. How much total gain or loss did the investor realize?


◦ - $500
◦ $100
◦ Breakeven
◦ $700
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Marked as best answer by sarasara on Apr 14, 2019

mk6555

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Reply #1 on: Apr 14, 2019
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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sarasara

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Reply 2 on: Apr 14, 2019
Thanks for the timely response, appreciate it

billybob123

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Reply 3 on: Yesterday
Great answer, keep it coming :)

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