What are two alternative trading strategies for investor

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Reference no: EM132833301

The current stock price is $75.00 and a six-month European call option with a strike price of $78.00 costs $2.5. An investor has $7,500 to invest.

i. What are two alternative trading strategies for this investor?

ii. In which situation can both strategies make the same profits?

iii. Distinguish different situations and compare the profit or loss of each strategy in each situation.

Reference no: EM132833301

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