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Author Question: The purchasing of stocks in different industries, bonds, and several mutual funds would be a way to ... (Read 87 times)

jazziefee

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Question 1

An investor purchases a call option for $5 per share in a stock currently selling for $24 per share. The exercise price is $30 per share. On the day the option expires, the stock is selling for $29 per share. What will the investor do? What is the investor's total gain or loss?


◦ Exercise the option; total gain $500
◦ Allow the option to expire; total gain $500
◦ Allow the option to expire; total loss $500
◦ Exercise the option; total loss $100

Question 2

The purchasing of stocks in different industries, bonds, and several mutual funds would be a way to ________ your portfolio.



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Marked as best answer by jazziefee on Apr 14, 2019

sokh

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