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Suppose you have $60,000 to invest. You're considering Miller-Moore Equine Enterprises (MMEE), which is currently selling for $30 per share. You also notice that a call option with a $30 strike price and six months to maturity is available.

The premium is $3. MMEE pays no dividends. What is your annualized return from these two investments if, in six months, MMEE is selling for $35 per share?

What about $26 per share? (Negative values should be indicated by a minus sign. Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. Omit the "%" sign in your response.)

Annualized Return Stock Option

$35 per share ----- % ----- %

$26 per share ------ % ---- %

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92839562

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