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please help with red cells Suppose you think AppX stock is going to appreciate substantially in value in the next year. Say the stock's current

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please help with red cells

Suppose you think AppX stock is going to appreciate substantially in value in the next year. Say the stock's current price, So, is $60, and a call option expiring in one year has an exercise price, of $60 and is selling at a price, C, of $10. With $15,000 to invest, you are considering three alternatives. a. Invest all $15,000 in the stock, buying 250 shares. b. Invest all $15,000 in 1,500 options (15 contracts). c. Buy 100 options (one contract) for $1,000, and invest the remaining $14,000 in a money market fund paying 5% in interest over 6 months (10% per year). What is your rate of return for each alternative for the following four stock prices in 6 months? (Leave no cells blank - be certain to enter "0" wherever required. Negative amounts should be indicated by a minus sign. Round the "Percentage return of your portfolio (Bills + 100 options)" answers to 2 decimal places.) The total value of your portfolio in six months for each of the following stock prices is: Answer is complete and correct. Price of Stock 6 Months from Now Stock Price $ 40 $ $ 60 15,000 70 17,500 80 20,000 10,000 All stocks (250 shares) All options (1,500 options) 0 0 15,000 30,000 Bills + 100 options 14,700 14,700 15,560 16,560 The percentage return of your portfolio in six months for each of the following stock prices is: X Answer is complete but not entirely correct. Price of Stock 6 Months from Now Stock Price 40 $ 60 S 70 $ All stocks (250 shares) (33)% 0 % 17 % All options (1,500 options) 0 Bills + 100 options (2.00) X $ (100) (2.00) (100) (2.00) $ 80 33 % 100 (2.00) X Suppose you think AppX stock is going to appreciate substantially in value in the next year. Say the stock's current price, So, is $60, and a call option expiring in one year has an exercise price, of $60 and is selling at a price, C, of $10. With $15,000 to invest, you are considering three alternatives. a. Invest all $15,000 in the stock, buying 250 shares. b. Invest all $15,000 in 1,500 options (15 contracts). c. Buy 100 options (one contract) for $1,000, and invest the remaining $14,000 in a money market fund paying 5% in interest over 6 months (10% per year). What is your rate of return for each alternative for the following four stock prices in 6 months? (Leave no cells blank - be certain to enter "0" wherever required. Negative amounts should be indicated by a minus sign. Round the "Percentage return of your portfolio (Bills + 100 options)" answers to 2 decimal places.) The total value of your portfolio in six months for each of the following stock prices is: Answer is complete and correct. Price of Stock 6 Months from Now Stock Price $ 40 $ $ 60 15,000 70 17,500 80 20,000 10,000 All stocks (250 shares) All options (1,500 options) 0 0 15,000 30,000 Bills + 100 options 14,700 14,700 15,560 16,560 The percentage return of your portfolio in six months for each of the following stock prices is: X Answer is complete but not entirely correct. Price of Stock 6 Months from Now Stock Price 40 $ 60 S 70 $ All stocks (250 shares) (33)% 0 % 17 % All options (1,500 options) 0 Bills + 100 options (2.00) X $ (100) (2.00) (100) (2.00) $ 80 33 % 100 (2.00) X

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