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Problem 3-18 Annualized Returns (LO2, LO4, CFA1) Suppose you have $60,000 to invest. You're considering Miller-Moore Equine Enterprises (MMEE), which is currently selling for $30

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Problem 3-18 Annualized Returns (LO2, LO4, CFA1) Suppose you have $60,000 to invest. You're considering Miller-Moore Equine Enterprises (MMEE), which is currently selling for $30 per share. You also notice that a call option with a strike price of $30 and six months to maturity is available. The premium is $3. MMEE pays no dividends. What is your annualized return from these two investments if, in six months, MMEE is selling for $35 per share? What about $26 per share? (A negative value should be indicated by a minus sign. Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) Annualused Return Stock Option % % $35 per share $26 per share

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