Suppose you think AppX stock is going to appreciate substantially in value in the next year. Say the stock$$s current price, S$0,$ is $$100,$ and the 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:

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

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

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

Required:

a$.$ Calculate the value of the investment for stock price one year from now? $($Leave no cells blank $-$ be certain to enter $"0"$ wherever required.$)$

b$.$ Calculate the rate of return on investment for stock price one year from now? $($Leave no cells blank $-$ be certain to enter $"0"$ wherever required. Negative values should be indicated by a minus sign. Round your answers to $1$ decimal place.$)$