Suppose you think Wal-Mart stock is going to appreciate in the next year. Current price S0 is $100, and the call option expiring in one year has an exercise price, X, of $100 and is selling at a price, C, of $10. With $10,000 to invest, you are considering three alternatives:

A. invest all in stock

B. invest all in 1,000 options (10 contracts)

C. buy 100 option (1 contract) and invest the remaining $9K in MMF that pays $4% interest annually?

What is the rate of return for each alternative if one year later the stock price is $80?