I. You believe that Amgore stock will increase in value over the next six months. The stock is currently trading at $100/share. A six month call option struck at S100 sells for $9. The semi-annual interest rate is 3%. Consider the following three strategies of investing $18,000. Invest entirely in stock; buy 180 shares, each selling for $100 a. b. Invest entirely in at the money call options. Buy 2,000 calls, each selling for S9 Purchase 500 calls and invest the remaining $13,500 in six month bills eaming3% c. Analyze each of the strategies and show the value of the portfolios when the options expire in six months. Also show the rates of return on the three portfolios. [Use the stock prices shown below.] 80 S 90 $ 100 S 110 S 120 S 130