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The following table lists prices of Alphabet options in December 2015 when Alphabet stock was selling...

The following table lists prices of Alphabet options in December 2015 when Alphabet stock was selling for $750.

Expiration Date Exercise Price Call Price Put Price
January 2017 $ 700 $ 105.11 $ 63.54
750 81.80 76.50
800 61.10 106.00

Suppose that by January 2017, the price of Alphabet could either rise from its December 2015 level to $750 × 1.24 = $930.00 or fall to $750/1.24 = $604.84.

a. What would be your percentage return on a January expiration call option with an exercise price of $750 if the stock price rose? (Negative amounts should be indicated by a minus sign. Round your answers to 2 decimal places.)

Percentage return %

b. What would be your percentage return if the stock price fell?

Percentage return %

c. Which is riskier: the stock or the option?

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