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8.9 You have $1000. You are looking at buying 100 shares of a stock that currently sells for $10 per share. You could also buy

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8.9 You have $1000. You are looking at buying 100 shares of a stock that currently sells for $10 per share. You could also buy 500 one-month call options (price at $2.00 each) that have a strike price of $8.50. a. (5 points) Assume that the price of the stock rises 20% to $12 at the end of the month. Compare your positions at the end of the month if you bought only stock compared to buying only options. b. (5 points) Assume that the price of the stock has fallen 20% to S8 at the end of the month. Compare your positions at the end of the month if you bought only stock compared to buying only options

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