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Firstly I am sure I will expose my ignorance in this thread but hey...

If I wish to purchase a call on a commodity.. How do I calculate / find out the leverage potential ??

Say I wish to take a call on A amount (eg 1000 USD) of B item (gold) at C value (450 USD / Ounce) at D date (31.12.05)..

Its my understanding all I have to loose is the initial (A) stake / amount / premium (1000 USD) and I can cash out at any time prior to the (D) date should I wish to exersize that option.

What I dont have any understanding off is how do I calculate the leverage on such an item. Does this data require a broker and subscription based service or are there ways to do this mental game (thats all it is currently) without such costs.

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