3 Question 1 You start your day at Risk Solutions Corp. One of your clients, Charles Swaney, believes that WMT will have an outstanding performance over the following weeks. He asks you to recommend him a suitable strategy, with limited losses if things do not happen the way he expects. You suggest him to follow a bull spread strategy with call options. Specifically, you recommend a long position on two calls with strike prices 120 and 166, which have call premiums of 11 and 8, respectively. You remind him that each call option contract controls 100 shares. One month later, the stock price is 77. Mr. Swaney has been travelling and has not paid attention to the markets. He calls you and asks you to calculate the total profit (or loss) of the portfolio