You want to buy 100 shares of XYZ stock and you don't want to pay more than $20 per share for it. Which option strategy would be the least expensive? 1. Sell one xyz 20 put for 53. 2. Buy one xyz 20 put for 51. 3. Buy one xyz 20 call for $2. 4. Sell one xyz 20 call for $4.
You want to buy 100 shares of XYZ stock and you don't want to pay more than $20 per share for it. Which option strategy would be the least expensive? 1. Sell one xyz 20 put for 53. 2. Buy one xyz 20 put for 51. 3. Buy one xyz 20 call for $2. 4. Sell one xyz 20 call for $4.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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You want to buy 100 shares of XYZ stock and you don't want to pay more than $20 per share for it. Which option strategy would be the least expensive? 1. Sell one xyz 20 put for 53. 2. Buy one xyz 20 put for 51. 3. Buy one xyz 20 call for $2. 4. Sell one xyz 20 call for $4.
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