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 Business Analytics (MindTap Course List)
2nd Edition
ISBN:9781305627734
Author:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson
Publisher:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson
Chapter15: Decision Analysis
Section: Chapter Questions
Problem 19P: A firm has three investment alternatives. Payoffs are in thousands of dollars. a. Using the expected...
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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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