Investing 101: What Are Your Options?
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An option costs only a fraction of the cost to buy 100 shares. For example, after the trading day closed on August 10, 2010, McDonald’s (MCD) shares were selling for $72.84, so that 100 shares cost $7,284. But you could control those shares by buying one 72.50 September call for only $157, or about 2% of the cost of buying those 100 shares.
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