As an investor looking to buy 100 Dell shares in August at $20 each through an option contract. The premium for the contract is 1.5$

a) What type of expectations does the investor have? What type of investor is he?

b) As a hedger should he enter into a long call contract or a Short Put contract and why? Explain what it means and why you chose that.

c) Explain the profit or loss from whichever contract you selected if the spot price today in June is $18 and it is expected to be either 18 percent higher or 18 percent lower in August at exercise date

. d) What is the value of the contract in both scenarios and what would the contract be named accordingly?