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a. Invest all $12,600 in the stock, buying 315 shares. b. Invest all $12,600 in 900 options (9 contracts). c. Buy 100 options (one contract)

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a. Invest all $12,600 in the stock, buying 315 shares. b. Invest all $12,600 in 900 options (9 contracts). c. Buy 100 options (one contract) for $1,400, and invest the remaining $11,200 in a money market fund paying 5% in interest over 6 months (10% per year). What is your rate of return for each alternative for the following four stock prices in 6 months? (Leave no cells blank - be certain to enter "O" wherever required. Negative amounts should be indicated by a minus sign. Round the "Percentage return of your portfolio (Bills + 100 options)" answers to 2 decimal places.) The total value of your portfolio in six months for each of the following stock prices is: Price of Stock 6 Months from Now $ 40 $ 50 $ 35 $ 60 Stock Price All stocks (315 shares) All options (900 options) Bills + 100 options The percentage return of your portfolio in six months for each of the following stock prices is: Price of Stock 6 Months from Now $ 35 $ 40 $ 50 $ 60 Stock Price All stocks (315 shares) All options (900 options) % % % % Bills + 100 options

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