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Suppose you think FedEx stock is going to appreciate substantially in value in the next 6 months. Say the stock's current price, S_q. is $50,

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Suppose you think FedEx stock is going to appreciate substantially in value in the next 6 months. Say the stock's current price, S_q. is $50, and the call option expiring in 6 months 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. 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 fouc stock prices 6 months from now

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