a. Calculate the holding period returns for a long stock
position and a long call position if the stock price is $30, $40
and $50 on the expiration date. Assuming the stock was purchased at
$40 and the call was purchased at $5.24 with exercise price of $40.
b. Compare your calculation results for Part a, explain why a
long position in call can provide leverage to the investor.
c. If the price of SAS stock had stayed at $40...