$12$

$7\mathrm{.}14$

points

$\backslash$table$[[$eBook$],[$Print$],[$References$]]$

$\backslash$table$[[,,$Calls$],[$Ticker$,$Bid,Ask,Last,IVM,Volume,$],[$TGT $3/18/22,$C$200,20\mathrm{.}15,21\mathrm{.}60,29\mathrm{.}00y,35\mathrm{.}07,],[$TGT $3/18/22,$C$210,13\mathrm{.}45,13\mathrm{.}80,14\mathrm{.}25,32\mathrm{.}58,16],[$TGT $3/18/22,$C$220,8\mathrm{.}35,8\mathrm{.}65,9\mathrm{.}65,31\mathrm{.}34,20],[$TGT $3/18/22,$C$230,4\mathrm{.}85,5\mathrm{.}15,5\mathrm{.}10,31\mathrm{.}07,35],[$TGT $3/18/22$ C$240,2\mathrm{.}70,2\mathrm{.}95,2\mathrm{.}85,31\mathrm{.}08,16,]]$

$\backslash$table$[[,,$Puts$],[$Ticker$,$Bid,Ask,Last,IVM,Volume,$],[$TGT $3/18/22$ P$200,5\mathrm{.}00,5\mathrm{.}15,4\mathrm{.}95,34\mathrm{.}16,18,],[$TGT $3/18/22,$P$210,8\mathrm{.}30,8\mathrm{.}50,8\mathrm{.}35,32\mathrm{.}35,38],[$TGT $3/18/22,$P$220,12\mathrm{.}85,13\mathrm{.}45,12\mathrm{.}55,31\mathrm{.}34,6],[$TGT $3/18/22,$P$230,19\mathrm{.}15,19\mathrm{.}80,18\mathrm{.}49,30\mathrm{.}06,9],[$TGT $3/18/22$ P$240,26\mathrm{.}05,27\mathrm{.}80,25\mathrm{.}83,28\mathrm{.}44,5,]]$

Source: Bloomberg Finance L$.$P$.$

Assume you purchased the right to sell $2,000$ shares of Target stock in February $2022$ at a strike price of $$240$ per share. Suppose Target stock sells for $$212$ 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 $$268$ per share $($think about it$)?$ Assume your holding period for this investment is exactly three months.

Note: A negaive value should be indicated by a minus sign. Do not round intermediate calculations. Enter your $3-$month returns as a percent rounded to $2$ decimal places.

$\backslash$table$[[$Return on investment at $$212,\%,],[$Return on investment at $$268,-100,\%$