Use the following quotes for JC Penney stock options: View By Expiration: May 12 Jun 12 Aug 12 Nov 12 Jan 13 | Jan 14 Call Options Expire at close Friday, January 18, 2013 Strike Symbol Last Chg Bid Ask Vol Open Int 25.00 JCP130119000025000 12.00 0.00 11.55 11.70 9 4,148 30.00 JCP130119C00030000 8.39 0.00 7.75 7.85 1 1.849 33.00 JCP130119C00033000 6.35 0.00 5.80 5.90 8 96 34.00 JCP130119C00034000 5.05 0.00 5.25 5.35 14 16 35.00 JCP130119C00035000 4.60 +0.60 4.70 4.80 145 3,467 36.00 JCP130119C00036000 4.40 0.00 4.20 4.35 9 9 37.00 JCP130119C00037000 4.10 0.00 3.75 3.85 2 1,611 38.00 JCP130119C00038000 3.15 0.00 3.30 3.45 7 7 40.00 JCP130119C00040000 2.92 0.00 2.61 2.69 6 1,784 Put Options Strike Symbol 25.00 JCP130119P00025000 26.00 JCP130119P00026000 27.00 JCP130119P00027000 28.00 JCP130119P00028000 30.00 JCP130119P00030000 31.00 JCP130119P00031000 Last 1.42 1.32 1.56 Chg 0.00 0.00 0.00 Expire at close Friday, January 18, 2013 Bid Ask Vol Open Int 0.95 1.03 2,050 5.697 1.15 1.21 20 20 1.35 1.41 20 20 1.56 1.65 4 24 2.14 2.22 20 2,089 2.49 2.55 25 25 2.30 2.14 2.32 0.00 0.00 0.00 Last 1.42 1.32 1.56 Put Options Strike Symbol 25.00 JCP130119P00025000 26.00 JCP130119P00026000 27.00 JCP130119P00027000 28.00 JCP130119P00028000 30.00 JCP130119P00030000 31.00 JCP130119P00031000 32.00 JCP 130119P00032000 33.00 JCP130119P00033000 35.00 JCP130119P00035000 37.00 JCP130119P00037000 40.00 JCP130119P00040000 Chg 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2.30 2.14 2.32 3.20 3.05 4.10 6.25 7.25 Expire at close Friday, January 18, 2013 Bid Ask Vol Open Int 0.95 1.03 2,050 5,697 1.15 1.21 20 20 1.35 1.41 20 20 1.56 1.65 4 24 2.14 2.22 20 2,089 2.49 2.55 25 25 2.85 2.92 23 3.25 3.35 2 97 4.15 4.25 17 956 5.15 5.30 55 1.863 7.05 7.15 2 517 13 Assume you purchased the right to sell 2,200 shares of JC Penney stock in January 2013 at a strike price of $27 per share. Suppose the stock sells for $25.45 per share immediately before your options' expiration. What is the rate of return on your investment? What is your rate of return if the stock sells for $28.5 per share? (Enter the rates of return for the 3-month period.) (Negative values should be indicated by a minus sign. Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) Return on investment at $25.45 Return on investment at $28.5 96 96