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)
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.
Home » Business » 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.