Return on Stock Options.Teresa purchased a call option on a stock for

$101.

The option allows her to purchase the stock for

$40.05

per share if she exercises the option by December 31st. On December 15th, the stock rises to

$52.76

per share and Teresa exercises the option. What is Teresa's return?

(Hint:

Ignore transaction costs.)

Part 2

Teresa's return is

enter your response here%.

(Round to the nearest percent.)