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Use the following quotes for JCPenney stock options: November 27, 2015 In The Money List Straddle Lookup Option Calls Strike "Fiter Contract Name Last Last Bid Ask Implied Change Change Volume Open Interest Volatility 8.00 0.00 0.00% 56.45% 1.79 1.00 9.00 0.00% 1.62 0.98 0.74 0.40 9.50 0.69 JCP151127C00008000 JCP151127C00009000 JCP151127C00009500 JCP151127C00010000 JCP151127C00010500 JCP151127C00011000 1.89 1.10 0.78 0.48 0.29 0.00% 51.95% 50.00% 45.12% 0.00 0.00 0.00 0.03 -0.01 10.00 10.50 0.00% 0.44 0.26 0.28 12.00% 43.75% 11.00 0.16 0.15 0.18 -5.88% 44.34% Puts Strike Contract Name Last Bid Ask Change %Change Volume Open Interest Implied Volatility "Fiter 7.00 0.00% 67.58% 0.00% 8.50 9.00 9.50 53.13% JCP151127P00007000 JCP151127P00008500 JCP151127P00009000 JCP151127P00009500 0.03 0.18 0.29 0.06 0.31 0.41 0.65 0.08 0.21 0.33 0.50 0.00 0.00 0.00 0.00 0.00% 50.20% 0.47 0.00% 49.22% Assume you purchased the right to sell 2,000 shares of JCPenney stock in November 2015 at a strike price of $9 per share. Suppose JCPenney stock sells for $8 per share immediately before your options' expiration. What is the rate of return on your investment? What is your rate of return if the stock sells for $10 per share? (Enter the rates of return for the 3-month period.) (A negative value should be indicated by a minus sign. Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) 83.32% Return on investment at $8 Return on investment at $10

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