1. You are looking at a stock priced at $100 per share that you expect to increase in value over the next year. A call option on this stock with exercise price =$110 and a maturity of one year is selling for $10. With $10,000 to invest, you are considering three alternatives: i. Invest all $10,000 in the stock ii. Invest all $10,000 in options iii. Buy 200 options and invest the remaining funds in a money market fund earning 3% (a) Construct a table showing your rate of return for each alternative investment if the stock price is 80,85,90,95,100,105,110,115,120,125,130 one year from now. (b) Draw a diagram summarizing these results. (Note: you should have stock price on the horizontal axis and rate of return on the vertical axis). 1. You are looking at a stock priced at $100 per share that you expect to increase in value over the next year. A call option on this stock with exercise price =$110 and a maturity of one year is selling for $10. With $10,000 to invest, you are considering three alternatives: i. Invest all $10,000 in the stock ii. Invest all $10,000 in options iii. Buy 200 options and invest the remaining funds in a money market fund earning 3% (a) Construct a table showing your rate of return for each alternative investment if the stock price is 80,85,90,95,100,105,110,115,120,125,130 one year from now. (b) Draw a diagram summarizing these results. (Note: you should have stock price on the horizontal axis and rate of return on the vertical axis)