IBM was trading at $100 when Mrs. Peterson bought a 100 call on IBM at a price of $10. Three months later, IBM common stock was trading at $130, and the call option was trading at $33. The leverage factor for this situation would be:
A) 11x.
B) 3.3x.
C) 7.66x.
D) 25.38x.
Correct Answer:
Verified
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