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Suppose a stock is trading for $100/share, and you think the price has substantial upside within the next two months. At-the-money calls are trading

Suppose a stock is trading for $100/share, and you think the price has substantial upside within the next two months. At-the-money calls are trading for $5/share. a. What would be your ROI if you decided to buy the shares outright, assuming the price increased to $120? b. What would be your ROI if you decided to buy the calls, assuming the price increased to $120?

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a If you decide to buy the shares outright your ROI Return on Investment would be calculated as foll... blur-text-image

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