20

Problem 20 Intro You have $40,000 to invest. You are thinking of either buying 537 shares of Ford stock for $74.41 each, or buying 25,157 call options on Ford stock that expire in six months, have an exercise price of $80 and cost $1.59 each Part 1 Attempt 1/8 for 10 pts What is your profit if you buy the shares and the stock price is $20 in six months (in $)? -29218.117 Correct A B Part 2 IB Attempt 1/8 for 10 pts. What is your profit if you buy the options and the stock price is $50 in six months (in $)? 0+ decimals Submit Part 3 IB Attempt 1/8 for 10 pts What is your rate of return if you buy the shares and the stock price is $70 in six months? 3+decimals Submit Part 4 IB Attempt 1/8 for 10 pts. What is your rate of return if you buy the options and the stock price is $100 in six months? 1+ decimals Submit