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Suppose you think Apple stock is going to appreciate substantially in value in the next year. Say the stock'sc urrent price, So, is $50, in

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Suppose you think Apple stock is going to appreciate substantially in value in the next year. Say the stock'sc urrent price, So, is $50, in one year has an exercise price, X, of $50 and is selling at a price, C of $16. With $20,800 to invest, you are considering three alternatives. a. Invest all $20,800 in the stock, buying 416 shares. b. Invest all $20,800 in 1,300 options (13 contracts). C. Buy 100 months (8% per year). option one contract for $1,600, and invest the remaining $19,200 in a money market fund paying 4% in interest oer 6 What is your rate of return for each alternative for the following four stock prices in 6 months? (Leave no cells blank -be certain to enter "O" 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 50 $ Stock Price 48 $ 60 $ 70 All stocks (416 shares) All options (1,300 options) Bills + 100 options The percentage return of your portfolio in six months for each of the following stock prices is Price of Stock 6 Months from Now 50S 48$ 60 70 Stock Price All stocks (416 shares) All options (1.300 options) Bills + 100 options

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