14. A stock is trading at $50. Which three-month call option would make a larger move if the stock goes from $50 to $52, one with a strike price of 55 or

one with a strike price of $75?

15. If you buy a call for $2 with a strike price of $20 when the stock is trading at $20 and the stock is at $24 when the option expires, what is your

rate of return on the call? How does that compare with the rate of return on the stock?

16. Answer question 15 except the stock is at $22 when the option expires.