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10 points Suppose you think ABC stock is going to appreciate substantially in value in the next year. Say the stock's cu
Posted: Thu May 05, 2022 6:48 am
by answerhappygod
- 10 Points Suppose You Think Abc Stock Is Going To Appreciate Substantially In Value In The Next Year Say The Stock S Cu 1 (8.58 KiB) Viewed 36 times
10 points Suppose you think ABC stock is going to appreciate substantially in value in the next year. Say the stock's current price is $100, and the call option expiring in one year has an exercise price of $100 and is selling at a price of $10. With $10,000 to invest, you are buying 100 options (one contract) for $1,000 and investing the remaining $9,000 in a money market fund paying 4% interest annually. What is your rate of return of the stock price is $113 one year from today? (Round your answer to 4 decimal places)