1. Suppose you think that TVflix stock price is going to appreciate substantially in value in the next year. The stocks current price is $420. The call option expiring in one year has an exercise price of $420 and is selling at a price of $14. With $4,200 to invest, you are considering two alternatives:
   1. Invest all $4,200 in the stock, buying 10 shares.
   2. Invest all $4,200 in 300 options (3 contracts).

What is the rate of return for each alternative for two stock prices one year from now:

$380 and $504?