The price of a stock is 25 and the price of a three-month, Ask an Expert

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The price of a stock is $25 and the price of a three-month call option on the stock with a $27 strike is $2.50. Suppose a trader has $2,500 to invest and is trying to choose between buying 1,000 options (10 contracts) or 100 shares of stock. How high does the stock price have to rise for an investment in options to be as profitable as an investment in the stock?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M91260938

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