Business, 02.11.2019 06:31 calebhoover03
An investor's investment objective is income. he is long 100 shares of abc, a dividend paying stock. the last sale of the stock was $50.25. as a hedge, the investor is also short a july 50 call on abc. the last sale of the call was $0.50. abc declares a $.75 a share dividend. a suitable recommendation to the investor would be to:
(a) write another short call on abc before the ex-date
(b) close the existing short call on abc before the ex-date
(c) buy a call on abc on the ex-date
(d) sell the abc stock
Answers: 1
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An investor's investment objective is income. he is long 100 shares of abc, a dividend paying stock....
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