Question
Suppose you have $55,000 to invest. Youre considering Miller-Moore Equine Enterprises (MMEE), which is currently selling for $110 per share. You also notice that a
Suppose you have $55,000 to invest. Youre considering Miller-Moore Equine Enterprises (MMEE), which is currently selling for $110 per share. You also notice that a call option with a $110 strike price and six months to maturity is available. The premium is $5.5. MMEE pays no dividends. What is your annualized return from these two investments if, in six months, MMEE is selling for $118 per share? What about $106 per share? (Negative values should be indicated by a minus sign. Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. Omit the "%" sign in your response.)
Annualized Return | Stock | Option |
$118 per share | % | % |
$106 per share | % | % |
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