Suppose you think Agriums stock is going to appreciate substantially in value in the next year. Say the stocks current price, S₀, is $50, and a call option expiring in one year has an exercise price, X, of $50 and is selling at a price, C, of $9. With $18,900 to invest, you are considering three alternatives.

a. Invest all $18,900 in the stock, buying 378 shares

b. Invest all $18,900 in 2,100 options (21 contracts)

c. Buy 100 options (one contract) for $900, and invest the remaining $18,000 in a money market fund paying 6% in interest over 6 months (12% per year)

What is your rate of return for each alternative for the following four stock prices 6 months from now? (Leave no cells blank - be certain to enter "0" wherever required. Negative amounts should be indicated by a minus sign. Round your answers to 2 decimal places. Omit the "$" and "%" signs in your response.)

The total value of your portfolio in six months for each of the following stock prices is:

	Price of Stock 6 Months from Now
Stock Price	$30		$50		$60		$70
All stocks (378 shares)	$		$		$		$
All options (2,100 options)
Bills + 100 options

The percentage return of your portfolio in six months for each of the following stock prices is:

	Percentage Return of Portfolio in Six Months
Stock Price	$30		$50		$60		$70
All stocks (378 shares)	%		%		%		%
All options (2,100 options)
Bills + 100 options