BareBone is also considering buying a call option with a strike price of $3.00 on a DYNAMIC stock currently trading at $2.80. The cost of the call option is $0.30
Explain THREE (3) limitations of Ratio analysis.
(i) What is the maximum loss BareBone could incur for buying a call option strategy?
(ii) What is the maximum gain BareBone could incur for buying a call option strategy?