Suppose you think Tesla stock is going to appreciate substantially in value in the next year. Say the stocks current price, S, is $400, and a call option expiring in one year has an exercise price, X, of $380 and is selling at a price, C, of $40. With $40,000 to invest, you are considering three investment alternatives. Alternative A: Invest all $40,000 in the stock, buying 100 shares. Alternative B: Invest all $40,000 in 1,000 options (10 contracts). Alternative C: Buy 100 options (one contract) for $4,000, and invest the remaining fund in a money market fund paying 8% annual interest. Suppose Tesla stock goes up in price to $500 one year later.

a. What is total value of the investment for alternative A?(sample answer: $1850.75)

b. What is your rate of return of the investment for alternative A?(sample answer: 25.45% or -25.45% if it's negative)

c. What is total value of the investment for alternative B?(sample answer: $1850.75)

d. What is your rate of return for alternative B?(sample answer: 25.30%, or -25.30%)

e. What is total value of the investment for alternative C?(sample answer: $1850.75)

f. What is your rate of return for alternative C