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Suppose you think ABC stock is going to appreciate substantially in value in the next year. Say the stock's current price is $100, and the

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Suppose you think ABC stock is going to appreciate substantially in value in the next year. Say the stock's current price is $100, and the call option expiring in one year has an exercise price of $100 and is selling at a price of $10. With $10,000 to invest, you are buying 100 options (one contract) for $1,000 and investing the remaining $9,000 in a money market fund paying 8% interest annually. What is your rate of return if the stock price is $114 one year from today? (Round your answer to 4 decimal places) 8. You purchase one MBI March 110 put contract for a put premium of 35 . The maximum profit that you could gain from this strategy is per share

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