The current price of XYZ stock is $50, and two-month European
call options with a strike price of $51 currently sell for $10. As
a financial analyst at Merrill Lynch, you are considering two
trading strategies regarding stocks and options. Strategy A
involves buying 100 shares and Strategy B includes buying 500 call
options. Both strategies involve an investment of $5,000.
a. How much is the profit (loss) for strategy A if the stock
closes at $65? (sample answer: $100.25...