Money & Capital Markets - Earlham College
Assume the investment lasts for one year in all scenarios and that the stock price ends up being $120 at the end of the one year. a. You purchase the stock today with your own money. b. You purchase the stock today with $60 of your own money and $40 borrowed at 10% interest. c. You purchase a call option today for $2 with an exercise price of ... ................
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