2 3 Question 12 (8 points) An investor with $1,000 to invest feels that a stock price will increase over the next 2 months. The current stock price is $20 and the price of a 2-month call option with a strike of 22.5 is $1. You have two alternative strategies: 1)buy shares of stocks 2)buy the call options. For each alternative, a)What is the total gain or loss if the stock price turns out to be $10? 5 Buying stocks: 8 9 Buying options: b) What is the total gain or loss if the stock price turns out to be $27.52 12 Buying stocks: 14 Buying options: Format B 101 .. Question 13 (14 points) hedge its risk. The index futures price is currently 11.0898 each contact for delivery of shs times the index a) In order to minamaizesisk, how many furuten onder the firm need? bu should the company take a long other te portion does it need