an investor believes that the price of a stock will decrease in the next 60 days. if the investor is correct, which combination of following investment strategies will show a profit?
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You would like to speculate on a rise in the price of a certain stock. The current stock price is $\$ 29$, and a three-month call with a strike of $\$ 30$ costs $\$ 2.90$. You have $\$ 5.800$ to invest. Identify two alternative strategies, one involving an investment in the stock and the other involving investment in the option. What are the potential gains and losses from cach?
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