1.) What is the option market all about? Assume I believe a stock valued at $50.00 is priced too low (high). I think the price should be $54.00. An at-the-money call option (thoe exercise price and the current stock price are the same) is going for $3.00 and an at-the-money put option is selling for $2.50. Which of these two option markets should I enter (you can only choose one). Now say the stock rises to $60.00. Did you make the right choice? Explain