1.Given below the price movement of a company for a period of three months. Based on the price movements you have to forecast what could be the price at the end of the fourth month.

Depending on your forecast you will form an option strategy for the company.

The available strike prices and their respective call and put premiums are given for the company

CallPremium Strike PutPremium

15 680 58

17 670 50

20 660 43

24 650 47

28 640 32

32 630 30

38 620 25

42 610 21

49 600 17

56 590 13

63 580 11

Find the strategy, the strike prices chosen for the strategy, the maximum profit potential and the max loss potential for the strategy.

625.00 M x 600.00 575.00 550.00 525.00 500.00 475.00 >> 450.00 1 + 425.00