With Ths Following Information , Please Answer Letters A and B. You May Round Off.

\begin{tabular}{c|c} 1 & Problem #3 25 points \\ 2 & \end{tabular} 3 You have have $60,000 to invest. 5 Your considering a stock selling for $55 per share. 7 There is also a six month option with a stike price of $55. 9 The option premium if $5.50 11 The stock pays no dividends. 13 In six months the stock price inceased to $63 per share. 14 What is your annual return if: 16 17 18 a) Purchase the stock at $55 per share? 23 b) If you purchased the option? 24 25 26 27 28 29 We do a and b if price decreased to $45 per share