and a call option expiring in one year has an exerclse price, $x,$ of $$50$ and is selling at a price, $c_e.$ of $$16.$ With $$20,800$ to invest, you

are consiclering three alternatives.

a$.$ Invest all $$20,800$ in the stock, buying $416$ shares.

b$.$ Invest all $$20,800$ in $1,300$ uptions $(16$ contr ac:s$).$

c$.$ Buy $100$ options $($one contract$)$ for $$1,600,$ and invest the remaining $$19,200$ in a money market fund paying $4\%$ annual interest.

What is your rate of return for each alternatlve for the following four stock prices in one year?

Complete this question by entering your answers in the tabs below.

What is your rate of return for each alternative for the following four atock prices in one year?

The total value of your portfolio in one year for each of the following stock prices is:

Note: Leave no cells blank $-$ be certain to enter $"0"$ 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.

In tarme of

In tame of

collsr reture rate of return

What is pour rate of return for each alternative for the follewing four stack prices in ane year?

The percertage return of your portfolio in one year for each of the following stock prices is:

Note: Leave no cells blank $-$ be certain to enter $"0"$ wherever required. Negative ampurits should be indicated by a minus sign.

Rourd the "Percentage return of your portfolio $($eills $+100$ options$)"$ answers to $2$ decimal places.

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