What will holding period return and effective annual return

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Problem 1: You purchased an American style call option for $3.50 four weeks ago. The call has a strike price of $105 and the stock is trading for $110 today. If you exercise the call today, what will be your holding period return and effective annual return?

Select one:

Option 1: 23.95%; 1,530.06%

Option 2: 28.35%; 2.465.35%

Option 3: 42.86%; 10,223.77%

Option 4: 48.91%; 17,601.51%

Option 5: None of the above

Reference no: EM132763909

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