1a)

Suppose you have $28,000 to invest. Youre considering Miller Enterprises, which is currently selling for $40 per share. You also notice that a call option with a $40 strike price and six months to maturity is available. The premium is $4.00. Miller Enterprise pays no dividends. What is your annualized return from these two investments if, in six months, Miller Enterprise is selling for $48 per share?

b)

suppose a dividend of $0.80 per share is paid. Comment on how the returns would be affected