Suppose you think FedEx stock is going to appreciate substantially in value in the next 6 months. Say the stocks current price, S₀, is $100, and the call option expiring in 6 months 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% in interest over 6 months (8% per year).

What is your rate of return for each alternative for the following four stock prices 6 months from now? (Leave no cells blank - be certain to enter "0" wherever required. Negative amounts should be indicated by a minus sign. Round your answers to 2 decimal places. Omit the "$" and "%" signs in your response.)

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:

	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