I ONLY NEED HELP WITH C! I\'VE ANSWERED A AND B MYSELF! Suppose that you belive

Question

I ONLY NEED HELP WITH C! I'VE ANSWERED A AND B MYSELF!

Suppose that you belive the fundamental value of Wal-Grey stock is about to rise
from $50 to $100 because of its new management team. You have $20,000 that you can risk
in the market, and you can think of three possible ways to proÖt.
(a) use your $20,000 to buy shares of Wal-Grey
(b) borrow at 6% interest rate an additional $20,000 on margin to buy a total of $40,000
worth of Wal-Greay stock
(c) buy a call option (for every $1,000 you spend on call options, you have the right to buy
100 shares of Wal-Grey at the current price of $50 per share.)
Calculate how much you earn or lose by each method if
(i). Wal-Grey stock rises to $100 per share in one year
(ii). Wal-Grey stock stays at $50.

I ONLY NEED HELP WITH C! I'VE COMPLETED A AND B MYSELF!

Explanation / Answer

C. CALL 1000$ BUY == 50 X 50 = 2500$ AGAIN CALL 4 times= 4000$ buy = 10,000$ total money spent= 4000 + 1000 +2500+ 10000=17500$ shares earned no. = 250 1) sale price of250 shares = 250 *100 = 25000 profit = 25000-17500$= 7,500$ 2. sale price of250 shares = 250 *50 = 12500 loss = 5000$ please rate

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