Suppose you think AppX stock is going to appreciate substantially in value in the next year. Say the stock$$s current price, S$0,$ is $$40,$ and a call option expiring in one year has an exercise price, X$,$ of $$40$ and is selling at a price, C$,$ of $$15.$ With $$15,000$ to invest, you are considering three alternatives.

a$.$ Invest all $$15,000$ in the stock, buying $375$ shares.

b$.$ Invest all $$15,000$ in $1,000$ options $(10$ contracts$).$

c$.$ Buy $100$ options $($one contract$)$ for $$1,500,$ and invest the remaining $$13,500$ in a money market fund paying $6\%$ in interest over $6$ months $(12\%$ per year$).$