Problem 23-22 Option Risk (LO2) The following table lists prices of Amazon options in January 2018 when Amazon stock was selling for $1,300. Expiration Date April 2018 July 2018 Exercise Price $1,200 1,300 1,400 $1,200 1,300 1,400 $1,200 1,300 1,400 Call Price Put Price $132.70 $ 31.10 73.20 70.10 33.00 134.20 $161.70 $ 53.55 104.00 96.00 62.55 156.05 $210.00 $ 88.05 155.35 133.25 112.00 190.00 January 2019 Suppose that by January 2019, the price of Amazon could either rise from its January 2018 level to $1,300 1.22 = $1,586 or fall to $1,300/1.22 = $1,066. a. What would be your percentage return on a January expiration call option with an exercise price of $1,300 if the stock price rose? (Round your answer to 2 decimal places.) b. What would be your percentage return if the stock price fell? (Negative value should be indicated by a minus sign.) c. Which is riskier the stock or the option? 22.00% Percentage return