The price of a stock is 25 and the price of a three-month, Financial Management

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The price of a stock is 25 and the price of a three-month

The price of a stock is $25 and the price of a three-month call option on the stock with a $27 strike is $2.50. Suppose a trader has $2,500 to invest and is trying to choose between buying 1,000 options (10 contracts) or 100 shares of stock. How high does the stock price have to rise for an investment in options to be as profitable as an investment in the stock?

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Financial Management: The price of a stock is 25 and the price of a three-month

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