An investor has the alternative of buying 100 shares of XYZ at $50 per share or investing the same amount of money in XYZ 6-month calls priced at $5. Calculate the profit or loss from each strategy if XYZ rises to $60 in 6 months.

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The Answer of An investor has the alternative of buying 100 shares of XYZ at $50 per share or investing the same amount of money in XYZ 6-month calls priced at $5. Calculate the profit or loss from each strategy if XYZ rises to $60 in 6 months.

An Investor Has the Alternative of Buying 100 Shares of XYZ