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Suppose that by January 2019 , the price of Amazon could either rise from its January 2018 level to $1,2001.21=$1,452.00 or fall to $1,200/1.21=$991.74 a.

image text in transcribed Suppose that by January 2019 , the price of Amazon could either rise from its January 2018 level to $1,2001.21=$1,452.00 or fall to $1,200/1.21=$991.74 a. What would be your percentage return on a January expiration call option with an exercise price of $1,200 if the stock price rose? (Round your answer to 2 decimal places.) b. What would be your percentage return if the stock price fell? (Negative value should be indicated by a minus sign.) c. Which is riskier: the stock or the option

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