(Answered) Barebone is also considering buying a call option with a

Finance

BareBone is also considering buying a call option with a strike price of $3.00 on a DYNAMIC stock currently trading at $2.80. The cost of the call option is $0.30

Explain THREE (3) limitations of Ratio analysis.

(i) What is the maximum loss BareBone could incur for buying a call option strategy?

(ii) What is the maximum gain BareBone could incur for buying a call option strategy?

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