Andrew thinks the stock of LoJo, Inc. is about to increase in value as a result of the success of a number of the company’s products. If he is correct, Andrew can earn the highest return on his investment by: a. selling put options on LoJo. b. selling call options on LoJo. c. buying call options on LoJo. d. buying loJo stock and simultaneously selling call options on the stock.
I go with C
C… just think of the payoff diagrams…
C. But I read it several times. Couldn`t imagine that it is easy…
Yes, it is C.