Assume you purchased the right to sell 2,400 shares of JC Penney stock in January 2013 at a strike price of $27 per share. Suppose the stock sells for $25.5 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 $28 per share? (Enter the rates of return for the 3-month period.)

Use following quotes for JC Penney stock options: View By Expiration: May 12 l Jun 12 Aug 12 Nov 12 l Jan 13 I Jan 14 Call options Expire at close Friday, January 18, 2013 symbol Last Chg Bid Ask vol Open Int Strike 0.00 11.55 11.70 9 4.148 25.00 JCP130119C0002 5000 12.00 8.39 0.00 775 785 1 1.849 30.00 JCP130119C00030000 33.00 JCP130119C000 33000 6135 0.00 5.80 5.90 8 96 JCP130119co0034000 5.05 0.00 525 5.35 14 16 34.00 35.00 JCP130119c00035000 4.60 40.60 470 480 145 3467 440 0.00 420 4.35 9 9 36.00 JCP130119C00036000 37.00 JCP130119C00037000 4.10 0.00 375 385 2 1.611 3.15 0.00 330 345 7 7 38.00 JCP130119C000 38000 400.00 JCP130119co0040000 2192 0.00 2.61 2.69 6 1.784 Put options Expire at close Friday, January 18, 2013 Symbol Last Chg Bid Ask Vol open Int Strike 142 0.00 0.95 1.03 2.050 5.697 25.00 JCP130119 P00025000 1.32 0.00 1.15 1.21 20 20 26.00 JCP13 P00026000 27.00 JCP130119P00027000 156 0.00 1.35 1.41 20 20 28.00 JCP130119P00028000 2.30 0.00 1.56 1.65 4 24 30.00 JCP130119P00030000 2.14 0.00 214 222 20 2089 31.00 JCP130119 P00031000 2.32 0.00 249 2.55 25 25 32.00 JCP130119P00032000 JCP130119P00033000 3.05 0.00 325 3.35 2 97 33.000 35.00 JCP130119P00035000 4.10 0.00 415 425 17 956 3.00 JCP130119P00037000 625 0.00 515 530 55 1863 7.25 0.00 705 7.15 2 517 400.000 JCP13 Assume you purchased the right to sell 2,400 shares of JC Penney stock in January 2 at a strike price of $27 per share. Suppose the stock sells for $25.5 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 $28 per share? (Enter the rates of return for the 3-month period.) (Negative values should be indicated by a minus sign. Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) Return on investment at $25.5 Return on investment at $28