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Intro An investor believes that the Cisco stock price is going to increase in the following 12 months from the current stock price of $200.

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Intro An investor believes that the Cisco stock price is going to increase in the following 12 months from the current stock price of $200. Call options on Cisco stock expiring in 12 months have a strike price of $222 and sell at a premium of $20 each. The investor has $10,000 to invest, and is considering 3 alternatives: 1. Purchase 500 call options. 2. Purchase 50 shares. 3. Invest $9,000 in a money market fund returning 5% per year and buy 50 call options with the remaining money. Assume that the stock price will be $236 per share after 12 months. Part 1 | Attempt 1/10 for 10 pts. What will be the investor's rate of return for alternative 1? 3+ decimals Submit Part 2 - Attempt 1/10 for 10 pts. What will be the investor's rate of return for alternative 2? 3+ decimals Submit Part 3 Attempt 1/10 for 10 pts. What will be the investor's rate of return for alternative 3? 4+ decimals Submit

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