Redraw table 1.5 and figure 1.5 in chapter 1 of the textbook for the case where you compare the purchase of 100 shares of stock to the purchase of 200 call options (not 2000). In particular compute precisely the stock price at maturity for which the profit is the same for both strategies (the stock price where the dotted line crosses the solid line). Use the same data as in the book except for the different number of call options

Table 1.5 Comparison of profits from two alternative strategies for using $2,000 to speculate on a stock worth $20 in October. December stock price Investor's strategy $15 $27 Buy 100 shares -$500 $700 Buy 2,000 call options -$2,000 $7,000 CHAPTER 1 Figure 1.5 Profit or loss from two alternative strategies for speculating on a stock currently worth $20. 10000 Profit ($) 8000 6000 4000 Buy shares Buy options 2000 0 20 25 30 15 -2000 Stock price (5) -4000 Table 1.5 Comparison of profits from two alternative strategies for using $2,000 to speculate on a stock worth $20 in October. December stock price Investor's strategy $15 $27 Buy 100 shares -$500 $700 Buy 2,000 call options -$2,000 $7,000 CHAPTER 1 Figure 1.5 Profit or loss from two alternative strategies for speculating on a stock currently worth $20. 10000 Profit ($) 8000 6000 4000 Buy shares Buy options 2000 0 20 25 30 15 -2000 Stock price (5) -4000