Speculating with stock options

Reference no: EM131230726

Speculating with Stock Options:

The price of Garner stock is $40. There is a call option on Garner stock that is at the money with a premium of $2.00. There is a put option on Garner stock that is at the money with a premium of $1.80.

Why would investors consider writing this call option and this put option? Why would some investors consider buying this call option and this put option?

Reference no: EM131230726

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