1 Problem 3 (25 points) 2 Assume that the price of Tesla stock is currently $760 a share. Also suppose that the 3 excercise price for the Tesla stock options is $760 a share for both puts and cals; the call price is $30 4 a share and put price is also $30 a share. Both options expire in 3 months. You would like to obtain a 5 profit from your firm view that the price of Tesla stock will move by more than $60 either up or 6 down in the next 3 months. However, you are not sure which way the stock price will move. 7 Assume that both options can only be excercised on expiration date. 9 (a) Assume your view is correct. Describe your position in these options. (7 points) 15 Given your answer in part a answer parts b, c and d about the combined position 17 (b) What is your total profit or loss per share if the stock price stays at $760 per share at expiration? (6 points) 22 (c.) Suppose the stock price drops to $250 per share at expiration. What is your total profit or loss per share? (6 points) 27 (d) Suppose the stock price increases to $800 per share at expiration. What is your total profit or loss per share? (6 points)