As an options trader you strongly believe the stock of will rise from it current price of $137 and are considering buying shares of the company. You have $137,000 to invest. As an alternative to purchasing the stock you are considering buying call options that expire in 3-months and have an exercise price of $140 and cost $10 each. 1. Compare the size of the payoff and the risk involved in each of these transactions 2. Calculate the 3-month rate of return on both strategies, assuming that at the option expiration stock price has (a) increased to $155 or (b) decreased to $135 3. At what stock price level will the person who sells you the call option break even or lose if the seller does not already own stock. As an options trader you strongly believe the stock of will rise from it current price of $137 and are considering buying shares of the company. You have $137,000 to invest. As an alternative to purchasing the stock you are considering buying call options that expire in 3-months and have an exercise price of $140 and cost $10 each. 1. Compare the size of the payoff and the risk involved in each of these transactions 2. Calculate the 3-month rate of return on both strategies, assuming that at the option expiration stock price has (a) increased to $155 or (b) decreased to $135 3. At what stock price level will the person who sells you the call option break even or lose if the seller does not already own stock