2. Jessica says to you, "I own 300 shares of IBM stock at $140, and I would like to continue to own the stock unless the shares went up in price to $155, but I do not think it is going to that price anytime soon. I wish I could earn a little more return on my investment in IBM while I wait for it to reach $155 in price." What would you recommend Jessica do to reach her objective? (6 points) 3. Emmie says to you, "I think MSFT stock price is going to go up in value, but not by too much. I want to buy a call option on MSFT to profit from my belief, but the call option premium is quite high." Explain an option strategy that will help Emmie reach her objective while reducing the overall amount she pays in option premiums. ( 6 points) 4. Brady Biotech Inc. (BBI) will be announcing the results of a Phase III cancer drug trial on 11/15/22. The market expects the results to move the stock price of BBI a significant amount up or down depending on the reported outcome of the trial. You, however, believe the market is overestimating how much BBI's stock price will change when the results are announced. Explain an option strategy you can use that will profit if your intuition is correct. (6 points) 5. Stephanie Scientifics Inc. (SSI) will be announcing the results of a Phase III diabetes drug on 11/22/22. Not only does she believe the market is underestimating how much SSI's stock price will move up or down on the announcement, but she also thinks it is twice as likely SSI will move up in price than down in price. How can she position herself using only options to profit form her expectations? ( 6 points)