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Suppose you think Paypal stock (PYPL) is going to appreciate substantially in value in the next year. Say the stock's current price is $62,

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Suppose you think Paypal stock (PYPL) is going to appreciate substantially in value in the next year. Say the stock's current price is $62, and the call option expiring in one year has an exercise price of $55 and is selling at a price of $10. With $62,000 to invest, you are considering three investment strategies: A. Invest all $62,000 in the stock, buying 1,000 shares. B. Invest all $62,000 in 6,200 options (62 contracts). C. Buy 15 contracts and invest the remaining in a money market fund paying 5.0% interest annually. What is your rate of return for Strategy B if the stock price one year from now is $75? 0% 100% 45% 200% 50%

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