Find the larger potential percent loss

Reference no: EM1345651

Assume you wish to control the price movements of 100 shares of stock. You may buy 100 shares of stock directly or purchase a call option on the 100 shares. Which strategy is likely to expose you to the larger potential dollar amount of loss? Which strategy is likely to expose you to the larger potential percent loss on your investment?

Reference no: EM1345651

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