An investor has $18,000 to invest and believes that the IBM stock price is going to increase in the following 12 months from the current stock price of $200. Call options on IBM stock expiring in 12 months have a strike price of $216 and sell at a premium of $20 each. Assume that the stock price will be $272 per share after 12 months.

A)What will be the investor's rate of return if they buy 90 shares?

A) What will be the investor's rate of return if they buy 900 call options?