EFTA Document EFTA01393127

XYZ at a premium of $5 a share) and invests the re- maining $4,500 in a relatively risk-free investment such as Treasury bills. (For purposes of this example, it is assumed that all of the calls are purchased when they have six months remaining until expiration, and that the risk-free investment bears interest at an annual rate of, say, 3.25% -which means that a $4500 investment will earn approximately $73 in interest over six months.) Investor C invests his entire $5,000 in 10 XYZ 50 ca