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You spend $1,000 to buy 100 call options on IBM stock (expires after one year; each covers one share) with $100 strike price, and spend
You spend $1,000 to buy 100 call options on IBM stock (expires after one year; each covers one share) with $100 strike price, and spend $9,000 to buy T-bills with 2% annual interest rate. If stock price increases to $115, your one-year rate of return would be
The answer is 6.80%
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