This example is part of "Hedged Portfolios" to minimize risk.

Assume you have $10,000 to invest;

A stock is trading at $80.00.

A call option that expires in one year with a strike price of $80.00 is trading at $10.00.

What is your portfolio's 1-year return if you invest in "Only Stocks" and the the stock price after one year is $105.00? Enter your answer in the following format: + or - 0.1234 Hint: Answer is between 0.2813 and 0.3438