16. Using Options Quotations (LO4, CFA4) In Problem 14, suppose Target stock sells for $53 per share immediately before your options’ expiration. What is the rate of return on your investment?

What is your rate of return if the stock sells for $60 per share (think about it)? Assume your holding period for this investment is exactly three months.

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Calls for March 15, 2019 Contract Name Last Trade Date Strike Last Price Bid Ask Change % Change TGT190315000050000 2018-12-19 3:37PM EST 50.00 13.55 20.05 20.30 0.00 TGT190315C00055000 2019-01-07 10:40AM EST 55.00 TGT190315C00057500 2018-12-19 2:58PM EST 57.50 14.53 15.35 15.50 0.00 7.90 12.95 13.20 0.00 TGT190315C00062500 2019-01-08 9:53AM EST 62.50 7.80 8.70 8.85 -0.57 -8.81% TGT190315C00067500 2019-01-08 11:11AM EST 67.50 5.32 5.25 5.40 +0.19 +3.70% TGT190315C00072500 2019-01-08 1:22PM EST 72.50 2.83 2.79 2.85 +0.04 +1.43% Puts for March 15, 2019 Contract Name Last Trade Date Strike Last Price Bid Ask Change % Changer TGT190315P00045000 2019-01-02 10:24AM EST 45.00 0.20 0.09 0.12 0.00 TGT190315P00047500 2019-01-08 10:38AM EST 47.50 0.19 0.14 0.18 -0.51 -72.86% TGT190315P00050000 2019-01-07 12:24PM EST 50.00 0.25 0.20 0.22 0.00 TGT190315P00055000 2019-01-08 12:13PM EST 55.00 0.49 0.45 0.48 -0.02 -3.92% TGT190315P00057500 2019-01-08 10:38AM EST TGT190315P00060000 2019-01-08 1:18PM EST 57.50 0.84 0.68 0.70 +0.02 +2.44% 60.00 1.07 1.03 1.05 -0.13 -10.83%