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The following table lists prices of Amazon options in January 2 0 1 8 when Amazon stock was selling for $ 1 , 4 0
The following table lists prices of Amazon options in January when Amazon stock was selling for $
Suppose that by January the price of Amazon could either rise from its January level to $$ or fall to
$$
a What would be your percentage return on a January expiration call option with an exercise price of $ if the stock price
rose? Round your answer to decimal places.
b What would be your percentage return if the stock price fell? Negative value should be indicated by a minus sign.
c Which is riskier: the stock or the option?
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