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You buy a call option. The call has a premium of $10 and a strike price of $60. You decide to go on margin, meaning
You buy a call option. The call has a premium of $10 and a strike price of $60. You decide to go on margin, meaning that you put down $8 of your own money and borrow the other $2. On the day of expiration, the underlying asset is worth $77. What is your percentage return on equity for this position? Round to the nearest percent - write +13% as .13 or -22% as -.22.
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