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For this and next four questions, assume: You bought Stock A at a purchase price of: $25 Call option strike price: $25 Option expiration date:

For this and next four questions, assume:

You bought Stock A at a purchase price of: $25 Call option strike price: $25 Option expiration date: June 30, 2022 Price of call option: $5

Return (%) = 100 * (payoff purchase cost)/purchase cost

Express as positive or negative percent to nearest whole percent, e.g. -100% = -100

1) You bought only the stock, and not the call option.

What is the return on the stock (%) if you sell it when the stock goes up to 50?

2)You bought only the call option, and not the stock.

What is the return on the call option (%) if you sell it when the stock goes up to 50?

3) You bought only the stock, and not the call option.

What is the return on the stock (%) if you sell it when the stock goes down to $5?

4) You bought only the call option, and not the stock.

What is the return on the call option (%) if you sell it when the stock goes down to 5?

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