Problem $3-16$ Using Options Quotations $($LO$4,$ CFA$4)$

Use the following quotes for Target stock options:

Ticker Calls

Bid Ask Last IVM Volume

TGT $3/18/22$ C$20020\mathrm{.}1521\mathrm{.}6029\mathrm{.}00$y $35\mathrm{.}07$

TGT $3/18/22$ C$21013\mathrm{.}4513\mathrm{.}8014\mathrm{.}2532\mathrm{.}5816$

TGT $3/18/22$ C$2208\mathrm{.}358\mathrm{.}659\mathrm{.}6531\mathrm{.}3420$

TGT $3/18/22$ C$2304\mathrm{.}855\mathrm{.}155\mathrm{.}1031\mathrm{.}0735$

TGT $3/18/22$ C$2402\mathrm{.}702\mathrm{.}952\mathrm{.}8531\mathrm{.}0816$

Ticker Puts

Bid Ask Last IVM Volume

TGT $3/18/22$ P$2005\mathrm{.}005\mathrm{.}154\mathrm{.}9534\mathrm{.}1618$

TGT $3/18/22$ P$2108\mathrm{.}308\mathrm{.}508\mathrm{.}3532\mathrm{.}3538$

TGT $3/18/22$ P$22012\mathrm{.}8513\mathrm{.}4512\mathrm{.}5531\mathrm{.}346$

TGT $3/18/22$ P$23019\mathrm{.}1519\mathrm{.}8018\mathrm{.}4930\mathrm{.}069$

TGT $3/18/22$ P$24026\mathrm{.}0527\mathrm{.}8025\mathrm{.}8328\mathrm{.}445$

Source: Bloomberg Finance L$.$P$.$

Assume you purchased the right to sell $2,000$ shares of Target stock in March $2022$ at a strike price of $$210$ per share. Suppose Target stock sells for $$200$ per share immediately before your options$$ expiration. What is the rate of return on your investment? What is your rate of return if the stock sells for $$220$ per share $($think about it$)?$ Assume your holding period for this investment is exactly three months.

Note: A negative value should be indicated by a minus sign. Do not round intermediate calculations. Enter your $3-$month returns as a percent rounded to $2$ decimal places.