22. You are bullish on IBM and have decided to buy 10 contracts (1000 shares) of me the-money IBM call options which will expire in three months. Currently the IBM stock is trading at $80 per share and the call premium is $5 per share. At what stock price you will be able to break even on the expiration date? 1) 75 2) 80 3) 85 4) none of the above 23. Continuing with the previous question, what's the return on this investment if the price of IBM is 120 or 40, respectively? 1) 100%, -100% 2) 700%-100% 3) 50%, -50% 4) none of the above 24. The expected return of a portfolio is 15% and its beta is 1.2. The T-bill rate is 5% and the S&P 500 index expected return is 15%. According to CAPM, the alpha of this portfolio is _ and this portfolio is 1) positive, overvalued 2) negative, overvalued 3) positive, undervalued 4) negative undervalued 5) O, fairly valued