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Author Question: You have $5,000 to invest and you are considering buying 100 shares of big-box retailer Buy n' Large ... (Read 274 times)

bio_gurl

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on: Apr 25, 2021
You have $5,000 to invest and you are considering buying 100 shares of big-box retailer Buy n' Large or 10 call options on the shares. The call option expires in six months, has a strike price of $50 and has a premium of $5 (per share). The stock price is currently $50. Assume that the stock price rises to $70 by the option expiry date. What is the ratio of the rate of return on the calls over the return on the stock?
◦ 2.50
◦ 5.00
◦ 7.50
◦ 10.00
Corporate Finance Online ¦ Eakins, McNally ¦ 2nd Edition
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Marked as best answer by bio_gurl on Apr 25, 2021

KKcool

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Reply #1 on: Apr 25, 2021
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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bio_gurl

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Reply 2 on: Apr 25, 2021
Great answer, keep it coming :)

irishcancer18

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

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