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You buy three contracts of a call option at an exercise price of $50. You exercise this option four months after you buy the option

You buy three contracts of a call option at an exercise price of $50. You exercise this option four months after you buy the option when the market price reaches 8% above the exercise price. The option premium per share is $1.50. Show Work.

a. The total net profits before taxes is:

b. The annualized rate of return before tax is:

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