Ask Question
11 October, 01:17

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

+3
Answers (1)
  1. 11 October, 04:54
    0
    D sell the abc stock
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “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. ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers