How to calculate the rate of return

Reference no: EM131953202

Question: When calculating the rate of return, how do you calculate the current value and Initial cost? For instance, in my case, number of shares are 100 , the excise price e is $100 and stock price is $102 , call option premium is $2.62. I calculate the net loss which is -62, but I don't know how to calculate the rate of return.(Rate of return=(current value-initial cost)/in.cost)But what is the initial cost? and current value?

Reference no: EM131953202

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