Suppose you think Apple stock is going to appreciate substantially in value in the next year. Say the stocks current price, S₀, is $100, and a call option expiring in one year has an exercise price, X, of $100 and is selling at a price, C, of $10. With $10,000 to invest, you are considering three alternatives.

a. Invest all $10,000 in the stock, buying 100 shares.

b. Invest all $10,000 in 1,000 options (10 contracts).

c. Buy 100 options (one contract) for $1,000, and invest the remaining $9,000 in a money market fund paying 4% annual interest.

What is your rate of return for each alternative for the following four stock prices in one year? (Leave no cells blank - be certain to enter "0" wherever required. Negative amounts should be indicated by a minus sign. Round the "Percentage return of your portfolio (Bills + 100 options)" answers to 2 decimal places.)

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	$80	$100	$110	$120
All stocks (100 shares)
All options (1,000 options)
Bills + 100 options

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