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You strongly believe that the price of Breener Inc. stock will rise substantially from its current level of $ 1 3 6 , and you

You strongly believe that the price of Breener Inc. stock will rise substantially from its current level of $136, and you are considering buying shares in the company. You currently have $12,240 to invest. As an alternative to purchasing the stock itself, you are also considering buying call options on Breener stock that expire in three months and have an exercise price of $138. These call options cost $10 each.
Calculate the three-month rate of return on the stock strategy assuming that at the option expiration date Breener's stock price has increased to $155. Do not round intermediate calculations. Round your answers to two decimal places.
-100.00%
13.97%
70.00%
16.89%

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