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Suppose you have $32,000 to invest. Youre considering Miller-Moore Equine Enterprises (MMEE), which is currently selling for $38 per share. You also notice that a

Suppose you have $32,000 to invest. Youre considering Miller-Moore Equine Enterprises (MMEE), which is currently selling for $38 per share. You also notice that a call option with a $38 strike price and six months to maturity is available. The premium is $4.00. MMEE paid a $0.80 per share dividends.

What is your annualized percentage rate of return from the investment in call option if, in six months, MMEE is selling for $42 per share?

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