Suppose you think FedEx stock is going to appreciate substantially in value in the next 6 months. Say the stocks current price, S₀, is $40, and the call option expiring in 6 months has an exercise price, X, of $40 and is selling at a price, C, of $14. With $12,600 to invest, you are considering three alternatives.

Suppose you think FedEx stock is going to appreciate substantially in value in the next 6 months. Say the stock's current price, So, is $40, and the call option expiring in 6 months has an exercise price, X, of $40 and is selling at a price, C, of $14. With $12,600 to invest, you are considering three alternatives a. Invest all $12,600 in the stock, buying 315 shares b. Invest all $12,600 in 900 options (9 contracts). c. Buy 100 options (one contract) for $1,400, and invest the remaining $11,200 in a money market fund paying 5% in interest over 6 months (10% per year). What is your rate of return for each alternative for the following four stock prices 6 months from now? (Leave no cells blank be certain to enter "O" wherever required. Negative amounts should be indicated by a minus sign. Round your answers to 2 decimal places. Omit the "$" 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 $35 $40 $50 Stock Price All stocks (315 shares) All options (900 options) Bills100 options $60 The percentage return of your portfolio in six months for each of the following stock prices is Price of Stock 6 Months from Now $40 $50 Stock Price All stocks (315 shares) All options (900 options) Bills100 options $35 $60