Answer:
a.305%
b.34%
Explanation:
If 450 options were bought,the investor would have invested just the amount paid for the options which is $9,000 ($20*450).
On exercising the option,the investor would gain per share the excess of market price over the option exercise price i.e 450*($268-$207)=$27,450.00
return on investment= 27,450/9000=305%
If the investor had bought the shares he would invested $9000 ($200*45)
By selling the shares for $268 return would $3,060 ($268-$200)*45
return on investment=$3,060/$9,000=34%
