1. Apple shares are traded at $144, and three-month European call options with a strike price of $150 currently sell for $4.80. Joan feels that the price of Apple shares will increase is trying to decide between buying 100 shares and buying 3,000 call options (= 30 contracts). Both strategies involve an investment of $14,400. What advice would you give? How high does the stock price have to rise for the option strategy to be more protable?