$10$

Suppose you think AppX stock is going to appreciate substantially in value in the next year. Say the stock's current price, $S_0,$ is $$100,$ and the call option expiring in one year has an exercise price, $x,$ of $$100$ and is selling at a price, $C,$ of $$10.$ With $$10,000$ to invest, you are considering three alternatives:

a$.$ Invest all $$10,000$ in the stock, buying $100$ shares.

b$.$ Invest all $$10,000$ in $1,000$ options $(10$ contracts$).$

c$.$ Buy $100$ options $($one contract$)$ for $$1,000$ and invest the remaining $$9,000$ in a money market fund paying $4\%$ interest annually.

Skipped

Required:

a$.$ Calculate the value of the investment for stock price one year from now? $($Leave no cells blank $-$ be certain to enter $"0"$ wherever required.$)$

References

$\backslash$table$[[$Price of Stock $1$ Year from Now,,,,,,,,$],[,$$$80,$$$100,$$$110,$$$120$