1. Suppose you have $28,000 to invest. You're considering Ntow Engineering Enterprices(NEE), which is currently selling for $40 per share. You also notice that an European call option with a strike price of $40 and 6 months to maturity available. The premium is $4. NEE pays no dividends. a. Determine and compare the annualized returns with and without the option if in 6 months the NEE's stock is selling for $36 per share. 4pts. And graphically illustrate the effect of the price change on the call option. 2pts

1. Suppose you have $28,000 to invest. You' re considering Ntow Engineering Enterprices(NEE). which is currently selline for $40 per thare. You ales notice that an furogean catt option with : strike price of 540 and 6 months to maturity available. The premium is 54 . Nit pays 60 dividends. a. Determine and compare the annualized returns with and without the option it in 6 months the NIE's stock is selling for $36 per share. 4pts. And graphically illostrate the effect of the price change on the call option. 2 pts