Question: Look back at Table 23.2. Suppose that by January 2017, the price of Alphabet could either rise from its December 2015 level to $750

Look back at Table 23.2. Suppose that by January 2017, the price of Alphabet could either rise from its December 2015 level to $750 × 1.22 = $915.00 or fall to $750/1.22 = $614.75.
a. What would be your percentage return on a January expiration call option with an exercise price of $750 if the stock price rose?
b. What would be your percentage return if the stock price fell?
c. Which is riskier: the stock or the option?

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