Assume that Audrey has bought 10 unit of call options 1 and the underlying stock price increases to RM80. Calculate the holding period return for this investment, if the contract size is 100 shares.

(b) Audrey is an aggressive investor. She has been studying Edu-competency Berhad for a couple of time and feels that the stock is about ready to move. She believes that the company share price will go up to RM80 from its current price of RM57.50 in the next two quarters. Besides that, Audrey also expected the company to pay an annual dividend of RM2.40 per share. In addition, six-month call options for this company are also listed on the exchange. The information of the call options is shown as following: Call options Options 1 Options 2 Strike price (RM) 50 60 Premium (RM) 8 5