If you have $4000 to invest and have the opportunity to either buy all stocks, or buy all options. The stock price is $20, calls for the stock have a strike of $21, and cost $2.
a. How many stocks can you buy, and how many option contracts (A contract is 100 options) can you buy?
b. If the stock increased to $25, what is your HPR ($ and %) for each scenario?
c. If the stock price decreased to $15, what is the HPR for each scenario?