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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 $216 and sell at a premium of $20 each. The investor has $18,000 to invest, and is considering 3 alternatives: 1. Purchase 900 call options. 2. Purchase 00 shares 3. Invest $16,200 in a money market fund returning 9% per year and buy 90 call options with the remaining money. Assume that the stock price will be $233 per share after 12 months. Attempt 3/3 for 8 pts Part 1 What will be the investor's rate of return for alternative 12 3+ decimals Submit Attempt 1/3 for 10 pts. Part 2 What will be the investor's rate of return for alternative 2? 3+ decimals Submit Attempt 1/3 for 10 pts. Part 3 What will be the investor's rate of return for alternative 3? 3+ decimals

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