What is annualized return from the two investments for khai

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Problem 1: You have $49,000 to invest. You want to either invest it all in one stock, or in options. The stock of the company you are considering- Khai Co.- is currently selling for $70 per share. There is also a call option available for Khai's stock with a $70 strike price and six months to maturity. The premium is $3.5. Khai pays no dividends. What is your annualized return from these two investments if, in six months, Khai is selling for $76 per share? What about $66 per share?

Reference no: EM133002131

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