Suppose you think AppX stock is going to appreciate substantially in value in the next year. Say the stock's current price, So. Is $100, and a call option expiring in one year has an exercise price, X, of $100 and is selling at a price, Co. 01 S10. With $10,000 to invest, you are considering three alternatives. Invest all $10,000 in the stock, buying 100 shares. Invest all $10,000 in 1,000 options (10 contracts). Buy 100 options (one contract) for $1,000, and invest the remaining $9,000 in a money market fund paying 4% annual interest. What is your rate of retum for each alternative for the following four stock prices in one year?

Suppose you think AppX stock is going to appreciate substantially in value in the next year. Say the stock's current price, So, is $50, and a call option expiring in one year has an exercise price, X, of $50 and is selling at a price, Co, of $9. With $18,900 to invest, you are considering three alternatives. a. Invest all $18,900 in the stock, buying 378 shares. b. Invest all $18,900 in 2,100 options (9 contracts). c. Buy 100 options (one contract) for $900, and invest the remaining $18,000 in a money market fund paying 6% annual interest. What is your rate of return for each alternative for the following four stock prices in one year? Complete this question by entering your answers in the tabs below. In terms of In terms of dollar returns rate of return What is your rate of return for each alternative for the following four stock prices in one year? The total value of your portfolio in one year for each of the following stock prices is: Note: Leave no cells blank - be certain to enter…

Suppose you think AppX stock is going to appreciate substantially in value in the next year. Say the stock's current price, So, is $80, and a call option expiring in one year has an exercise price, X, of $80 and is selling at a price, Co, of $24. With $24,000 to invest, you are considering three alternatives. a. Invest all $24,000 in the stock, buying 300 shares. b. Invest all $24,000 in 1,000 options (24 contracts). c. Buy 100 options (one contract) for $2,400, and invest the remaining $21,600 in a money market fund paying 6% annual interest. What is your rate of return for each alternative for the following four stock prices in one year? Complete this question by entering your answers in the tabs below. In terms of dollar returns In terms of rate of return What is your rate of return for each alternative for the following four stock prices in one year? The total value of your portfolio in one year for each of the following stock prices is: Note: Leave no cells blank be certain to…

Suppose you think Tesla stock is going to appreciate substantially in value in the next year. Say the stock’s current price, S, is $400, and a call option expiring in one year has an exercise price, X, of $390 and is selling at a price, C, of $40. With $40,000 to invest, you are considering three investment alternatives. Alternative A: Invest all $40,000 in the stock, buying 100 shares.Alternative B: Invest all $40,000 in 1,000 options (10 contracts).Alternative C: Buy 100 options (one contract) for $4,000, and invest the remaining fund in a money market fund paying 8% annual interest. Suppose Tesla stock goes up in price to $600 one year later.a.    What is total value of the investment for alternative A?(sample answer: $185.75)b.    What is your rate of return for alternative A?(sample answer: 25.30%)c.    What is total value of the investment for alternative C?(sample answer: $185.75)d.    What is your rate of return for alternative C?(sample answer: 25.30%)