Stock versus options stock in cheezy-poofs manufacturing

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Stock versus Options (LO2, CFA2) Stock in Cheezy-Poofs Manufacturing is currently priced at $50 per share. A call option with a $50 strike and 90 days to maturity is quoted at $1.95. Compare the percentage gains and losses from a $97,500 investment in the stock versus the option in 90 days for stock prices of $40, $50, and $60.

Reference no: EM131882309

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