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 the price of XYZ rises to $60 within a week.

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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 the price of XYZ rises to $60 within a week.

An Investor Has the Alternative of Buying 100 Shares of XYZ