# Question: suppose you think company ys share is going to appreciate...

###### Question details

Suppose you think company Y’s share is going to appreciate substantially in value next year. The current share of company Y is $50. One call option on this company’s share expiring in one year is currently available at $5 with an exercise price of $50. With $100,000 to invest, you are considering three investment strategies: a. Invest all $100,000 in shares b. Invest all $100,000 in options c. Buy 10,000 options and invest the remaining amount in treasury bills paying 5% annually Fill in the blank cells in the table below with the rate of return for each strategy for the share prices shown.