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Suppose you have $30,000 to invest. Youre considering Miller-Moore Equine Enterprises (MMEE), which is currently selling for $50 per share. You also notice that a

Suppose you have $30,000 to invest. Youre considering Miller-Moore Equine Enterprises (MMEE), which is currently selling for $50 per share. You also notice that a call option with a $50 strike price and six months to maturity is available. The premium is $4. MMEE pays no dividends. What is your annualized return from these two investments if, in six months, MMEE is selling for $56 per share? What about $46 per share?

Annualized return: Stock and Option

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