Ever since Warren Buffets Berkshire Hathaway (BRK.A) took a position in Barrick Gold (GOLD) last year youve been considering your own portfolios exposure to gold. You have $20,000 to invest and are considering two potential strategies for going long on Barrick:

1. Long stock--Buy 851 shares at the current price ($23.50)
2. Call options--Buy 10,000 call options at a price of $2/option with a strike price of $26 and an expiration date of March 19, 2021.

1. What will be your total profit and percentage rate of return on each strategy if the stock trades at $32 on March 19, 2021? What about $30? $28? $25?

	Strategy 1-Long stock		Strategy 2-Call options
Price	Profit ($)	Return (%)	Profit ($)	Return (%)
$32
$30
$28
$25