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Assume that at t = 0 a stock has price S = $500 and that a call that matures at T with a strike price

Assume that at t = 0 a stock has price S = $500 and that a call that matures at T with a strike price of X = $500 has a premium C = $10. Assume at the option's maturity, t = T, that ST= $500. Assume that at t = 0 that investor #1 buys 100 shares of stock and sells them at t = T. Assume that at t = 0 investor #2 buys one call option on the same stock & exercises it at t = T.  When investor #2 breaks even at T, what is the ROI (return on investment) for investor #1?  10% 0%  2%  5%   

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