A stockrsquos price is 38 and the price of a 3-month call, Ask an Expert

Finance

A stock’s price is $38 and the price of a 3-month call option on the stock with a strike price of $38 is $3.80. Suppose a trader has $3,800 to invest and is trying to choose between buying 1,000 options and 100 shares of stock. How high does the stock price have to rise for an investment in options to lead to the same profit as an investment in the stock?

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Financial Management, Finance

Category:- Financial Management
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