2) Current share price of ABDC Corp is $55. Given her forecasts of the future share value, Misha bought two put options on ABDC with a strike price of $55 and sold two put options one with strike price of $45, the other $55. Information on the options can be found in the table below:

Option Type	Exercise Price	Premium
Put	45	$1.84
Put	50	$3.96
Put	55	$6.99

All options are European options and have ABDC Corp as underlying; all options have identical maturities.

In the table below, tabulate the profits of Mishas investment strategy (S_T stands for the share price of ABDC at option maturity; the payoff and profit can be a function of S_T).

a) What is the maximum profit? What about maximum loss? (5 marks)

	ST < 45	45 < ST < 50	50 < ST < 55	ST > 55
payoff
profit

b) What is Mishas expectation of the share price of ABDC Corp, given her investment strategy? (maximum 2 sentences) (1 mark)