Problem:
Stock in Cheezy-Poofs Manufacturing is currently priced at $50 per share. A call option with a $50 strike and 90 days to maturity is quoted at $3.75.
Requirement:
Question: Compare the percentage gains and losses from a $18,750 investment in the stock versus the option in 90 days for stock prices of $40, $50, and $60.
Note: Provide support for rationale.