Suppose you think AppX 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 $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 options (one contract) for $1,600, and invest the remaining $19,200 in a money market fund paying 4% in interest over 6 months (8% per year). 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 "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:

Suppose you think AppX stock is going to appreciate substantially in value in the next year. Say the stock's current price, so, 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 $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 options (one contract) for $1,600, and invest the remaining $19,200 in a money market fund paying 4% in interest over 6 months (8% per year). 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 "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 48 $ 50 $ Stock Price $ 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 $ 50 48 70 $ $ 60 Stock Price $ % % All stocks (416 shares) 1 All options (1,300 options) Bills+ 100 options % %