Final answer:
The percentage return on the investment in call options is approximately 269.81%, calculated by dividing the net profit of $1287 by the initial cost of $477 and multiplying by 100.
Step-by-step explanation:
To calculate the percentage return on the investment in call options, you need to understand the profit made and then compare it to the initial investment. Since you purchased 9 call options with a $25 strike price at a cost of $0.53 per share, and on the expiration date the stock was priced at $26.96, your call options are in-the-money and can be exercised for a profit.
Each call option contract typically represents 100 shares. So, you control 9 * 100 = 900 shares. The gain per share is the difference between the stock's price on the expiration date and the strike price, which is $26.96 - $25 = $1.96. For 900 shares, the total profit from exercising the options is $1.96 * 900 = $1764.
The total initial cost of purchasing the options is $0.53 * 900 = $477. The net profit is $1764 - $477 = $1287. To find the percentage return, divide the net profit by the initial investment and multiply by 100, giving ($1287 / $477) * 100 = approximately 269.81% return on investment.