Akashs next strategy is to open a VERTICAL SPREAD. As he is Bullish on the stock, he has decided to Open a JULY BULLISH DEBIT SPREAD, using CALLs. Following are the available CALL options that he can choose from to EXECUTE this SPREAD strategy: Strike Price Premium 2000 318 2050 274 2100 234 2150 196

a. Please describe the Spread you would create and WHY b. What is your breakeven point, based on the options youve chosen. c. What is your Margin Requirement, based on the spread youve created? d. Using the same available cash noted in (13) above (i.e., $115,000) and the option you selected in (15a) above, how many DEBIT SPREADS can you establish? e. Assuming Akash is right and the stock rises to $2500 at expiration, what is your total profit on this trade, in dollars? f. What is your ROI on this trade? 2200 162 2250 129 2300 102 2350 77 2400 58 2450 43 2500 31