Compare the percentage gains or losses

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Stock in Cheezy-Poofs Manufacturing is currently priced at $43 per share. A call option with a $47.50 strike and 90 days to maturity is quoted at $0.75. Compare the percentage gains or losses from a $20,000 investment in the stock versus a $20,000 investment in the options (e.g., $20,000 worth of options) if, in 90 days, the stock price is $40; if the stock price is $50; and if the stock price is $60.

Reference no: EM132509601

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