Relative values of the various individual option premiums

Reference no: EM133377035

Question: The current stock price of Pharma Inc is $20. The firm is expected to announce the successful trials of a blockbuster drug. Your expect the stock price to rise at least 25% but no more than 50%. Sketch your optimal option trading strategy. On your diagram, clearly indicate the strike prices of the individual options included in your portfolio and the relative values of the various individual option premiums.

Reference no: EM133377035

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