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Assume you purchased the right to sell 2,000 shares of Target stock in February 2022 at a strike price of $210 per share. Suppose
Assume you purchased the right to sell 2,000 shares of Target stock in February 2022 at a strike price of $210 per share. Suppose Target stock sells for $203 per share immediately before your options' expiration. What is the rate of return on your investment? What is your rate of return if the stock sells for $217 per share (think about it)? Assume your holding period for this investment is exactly three months. Note: A negaive value should be indicated by a minus sign. Do not round intermediate calculations. Enter your 3-month returns as a percent rounded to 2 decimal places. Return on investment at $203 Return on investment at $217 % do do % Use the following quotes for Target stock options: Ticker TGT 3/18/22 C200 TGT 3/18/22 C210 TGT 3/18/22 C220 TGT 3/18/22 C230 TGT 3/18/22 C240 Ticker TGT 3/18/22 P200 TGT 3/18/22 P210 TGT 3/18/22 P220 TGT 3/18/22 P230 TGT 3/18/22 P240 Source: Bloomberg Finance L.P. Bid 20.15 13.45 8.35 4.85 2.70 Bid 5.00 8.30 12.85 19.15 26.05 Ask 21.60 13.80 8.65 5.15 2.95 Ask 5.15 8.50 13.45 19.80 27.80 Calls Last 29.00y 14.25 9.65 5.10 2.85 Puts Last 4.95 8.35 12.55 18.49 25.83 IVM 35.07 32.58 31.34 31.07 31.08 IVM 34.16 32.35 31.34 30.06 28.44 Volume 16 20 35 16 Volume 18 38 6 9 5
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