Ask Question
22 March, 08:25

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

+2
Answers (1)
  1. 22 March, 08:46
    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 the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers