Why do you think an investor purchase a call that is so far, Financial Management

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Why do you think an investor purchase a call that is so far

Circle Stores stock is priced at $28 a share. A $40 call on this stock has five months until expiration and a call price of $0.15. Based on the concepts covered in this chapter, why do you think an investor purchase a call that is so far out of the money?

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Financial Management: Why do you think an investor purchase a call that is so far

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