An investor believes that the stock price of XYZ (currently $57 per share) could move substantially in either direction due to an expected court decision. He currently owns no XYZ shares, but wishes to use option strategies to capitalize on the possible stock price movement. The relevant XYZ options data are as follows:

	call option	put option
price	5	4
strike price	60	55
time to expiration	90 days from now	90 days from now

a) Based on the above information, recommend an option strategy that the investor should choose to achieve his objective.

b)Calculate, at expiration for the option strategy in (a), the

i) Maximum loss per share.

ii) Maximum gain per share.