Problem 3-16 Using Options Quotations (LO4, CFA4) Use the following quotes for JCPenney stock options: n The Money er 27, 2015 Strike Open nterest Change Volatility 56.45% 51.95% 50.00% 45 12% Bid Ask 0.00 12 0.00% 0.00% 0.00% 0.00% 1200% -5.88% JCP151127C00008000 1.62 1.79 1.89 8.00 9.00 JCP151127CO0009000 098 1.00 1.10 0.00 9.50 10.00 10.50 11.00 0.00 JCP151127C00009500 0 JCP151127C00010000 JCP151127C00010500 JCP151127C00011000 0.74 0.40 0.28 0.16 0.69 0.44 0.26 0.15 0.78 0.48 0.29 0.18 24 105 0.03 001 51 4434% Strike Prex 6 of 7 Next> Assignment Help Save & Exit Submit Bid Volume Open mplied 0.03 0.08 000 0.00 900 JCP151127P000000 041 029 0.330.00 0.00 Volatilty 67.58% 53.13% 5020% 49.22% JCP151127P00007000 0.0 JCP151127P00008500 0.21 0.00% 000% 10 9.50 JCP151127P000095 500 065 0.50 32 Assume you purchased the right to sell 3.700 shares of JCPenney stock in November 2015 at a strike price of $7.00 per share. the stock sells for $6.50 per share immediately before your options' expiration. What is the rate of return on your investment? months. (A negative value should be indicated by a minus sign. Do not round intermedi returns as a percent rounded to 2 decimal places.) is your rate of return if the stock selils for $8.00 per share? Assume your holding period for this investment is exactly three 3-month Return on investment at $6 50 Return on investment at $8.00 Lokar Re