Solution-Problem regarding the investment strategies

Problem regarding the investment strategies

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An investor believes that the price of a stock, say IBM's shares, will increase in the next 60 days. If the investor is correct, which combination of the following investment strategies will show a profit in all the choices? List all investment strategies that will generate positive returns and explain why.(i) - buy the stock and hold it for 60 days(ii) - buy a put option(iii) - sell (write) a call option(iv) - buy a call option(v) - sell (write) a put option.

Reference no: EM131069047

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Problem regarding the investment strategies

Reference no: EM131069047

Reference no: EM131069047

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