Predict price of common stock

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Reference no: EM131049665

Price of Common Stock = 71 1/7; You predict Price of Common Stock will go to 99.99. With option premiums at 8 1/2%, a) Which option will make you the MOST money, assuming you are right? b) You have absolutely NO CLUE which way the market will turn after the "Fiscal Cliff" starts. The price of this stock could fall to 57 1/4. Which option would be the most logical to buy to protect yourself whichever way things turn out? (show calculations)

Reference no: EM131049665

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Predict price of common stock : Price of Common Stock = 71 1/7; You predict Price of Common Stock will go to 99.99. With option premiums at 8 1/2%, a) Which option will make you the MOST money, assuming you are right? b) You have absolutely NO CLUE which way the market will turn af..

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