Below is option chain on Suncor stock with expiration on Jan 19, 2019. Suncor stock closed at $44.70 on Dec 23, 2017. Explain how you can set up a butterfly spread with call options with K = $46, K = $48 and K =$50. Provide an example. At what price will the strategy yield maximum profit? At what price(s) does the strategy yield maximum losses?

Q1. Below is option chain on Suncor stock with expiration onJan 19, 2019. Suncor stock closed at $44.70 on Dec 23, 2017'. Explain how you can set up a butterfly spread with call options with K = $41-15J K = $43 and K =$5fl Provide an example. At What price will the strategy yield maxiinmn prot? At What pricele] does the strategy- yield maximum losses? Symbols Last Strike Symbols Last SU Jim 32.00 Call $13.20 32 SL'Jan 32.00 Put $1.11 30 Jim 34.00 call $11.45 34 SUJan 34.001311: $0.90 5111311 30.00 Call $9.00 30 SETJan 30.00 Fur $1.42 SL1 Jan 38.00 Call $7.95 38 SLJ_|an 38.001311t $1.82 SUJan 40.00 Call $6.65 40 SL5_|an 40.00 Put $2.29 511140 42.00 (Ii-ill $5.30 42 HETJan 43.00 Put $3.05 5511191: 44.00 Call $4.10 44 5111411 44.00 Pul- 11.95 SUJam 46.00 Call $3.10 46 SUJan 40.00 Put $5400 SLIJan 40.00 Call $2.32 43 SLIJm 43.001211: 50.25 51.1011 50.00 Call $1.13 50 SUJan 50.001511: $7.45 Solalte:CIBC Q2. Choose a company- u'hich has executive options outstanding and value lese options. From the annual report use data on: number of stock options outstanding - average life - average exercise price - dividend vield - volatility - risk-free rate information should be updated to reflect most recent market conditions. You can use riskfree rate from assignment 1.. Show all details of your calculations by hand. Note: banks have changed their options compensation policies following the 2008 crisisJ so you may want to examine annual reports of Emma .in oler industries