Investments concerning shares of stock

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Reference no: EM13919354

Consider each of the following investments concerning shares of stock X:

1. Purchase a call option. 2. Purchase a put option. 3. Sell a call option. 4. Sell a put option

2. Sell short.

A trader believes that the price of stock X is about to increase substantially, and that the increase is not reflected in current market prices. Choose the investment(s) the trader is likely to find attractive in the current market.

a. 1,4 b. 2,3 c. 1,4,5 d. 2,3,5 e. None

Reference no: EM13919354

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