You Have $100 to Invest

question 9

Multiple Choice

You have $100 to invest. You can invest it in one of two alternatives. The first is to invest it in a stock that is trading for $100. The second is to buy three-month 100-strike calls on the stock that are currently trading at $4 each. You expect the stock price to appreciate with a maximum price after three months of $110. What is the maximum return on investment you can generate using stock and options?

• A) 10%
• B) 50%
• C) 150%
• D) 250%

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Definitions:

Bronchitis

An inflammation of the bronchial tubes, which carry air to and from the lungs, often resulting from infection or exposure to irritants.

Atelectasis

Collapse of alveoli, preventing the normal respiratory exchange of oxygen and carbon dioxide.

Breathing Exercises

Techniques focused on deep, rhythmic, and conscious inhalation and exhalation, used to reduce stress, improve lung function, and enhance overall well-being.

Chronic Conditions

Long-lasting diseases or health conditions that typically progress slowly, requiring ongoing medical attention and management.