3.2 Assume that the outstanding European option contracts available on the stock of ABC are listed in the table below. These option contracts are due to expire in three months. The stock of ABC is currently trading at 45. Instrument Exercise Option Instrument Exercise Option Price Premium Price Premium Call 1 8.88 Put 1 40 1.87 Call 2 45 5.76 Put 2 45 4.04 Call 3 50 3.56 Put 3 50 7.12 40 Consider the following two option strategies: Strategy A: purchase the out-of-the-money call and the out-of-the-money put Strategy B: purchase the at-the-money call and the at-the-money put Explain investors' reasoning behind building these two strategies and discuss the circumstances under which investors should choose one over the other. Draw the profit diagram, indicating break-even prices, at the option expiration date to support your answer. The maximum word count is 200 words (6%)