Circle Stores Stock Is Priced at $28 a Share

question 62

Essay

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.Why would an investor purchase a call that is so far out of the money?

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Definitions:

Humanitarian Benefits

Positive impacts or aid provided to individuals or communities in crisis, aimed at saving lives, alleviating suffering, and maintaining human dignity.

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Principle Investigator

The lead researcher responsible for the oversight, design, and execution of a research project.