Alt You are cautiously bullish on the common stock of the Wildwood Corporation over the next couple years, but you are not sure about the market movement of the coming couple months. The current price of the stock is $50 per share and you don't believe the stock price would rise too much above $50 if at all for the next couple months. You want to establish a covered call position to bet on your belief of this short term uncertainties about the stock. You find the following option quotes and are going to choose the call option contract with strike price of $55 to implement the strategy: 2. Wildwood Corp Underlying Stock price: $50.00 Call 8.50 4.50 Put Strike 45.00 Expiration June June June 2.00 3.00 7.50 55.00 Currently the company's PEG ratio is 1.85 while the industry average PEG ratio is 2. The company has a past 12 month earnings per share of $2.5 and has a forecasted earnings per share of $3. The company's future ROE is forecasted to be 30% with a retained earnings ratio of 30%. Ignoring commissions, if in June the company's price is going to move in a direction so that its PEG ratio converges to the industry average (which is 2) given the forecasted EPS and growth rate, your net profit on the total covered call position would be how much (including stock loss/gain)? Hint: Figure out what will be the new stock price when company's PEG ratio becomes 2, then use the new stock price to calculate the profit loss of the covered call strategy